New Zealand Winegrowers is pleased the Commerce Commission says it was within the law when it recommended members reduce their output of wine.
Several people complained to the commission that the association was suggesting members should restrict their production to eight tonnes per hectare to avoid an oversupply.
The issue arose after a forecast that demand from the 2010 vintage would be 265,000 tonnes of grapes.
The commission says associations are allowed to make recommendations, as long as members know they do not have to follow them.
NZ Winegrowers chief executive Philip Gregan says members ultimately have to make their own decisions, and don't have to take the association's advice.
If the organisation did want to officially restrict output, it would need to apply for permission. Mr Gregan says it has no plans to do so.
