In a statement released on its website, PTAC said an advertising campaign Rigas Satiksme ran at the start of the year to explain major price hikes on its network fell foul of advertising laws by being deliberately misleading.
"PTAC found violations of ethical norms, as well as providing false information in advertising, for example advertisements made the statement: 'Latvian government, since 2009, no longer participates in the fiancing of the capital's public transport system," which according to Ministry of Transport information is not true - funding has been reduced, but it has not been suspended."
Other ads were notable for having "essential consumer information omitted or presented in an unclear manner."
The methodology used to compare public transport ticket prices in various European capitals was also deeply flawed, PTAC decided, "giving consumers a misleading impression of price comparisons in different European capitals."
It was also misleading of Riga Transport to say the price for a single ticket was €1.15 when in fact if bought from the driver of a public transport vehicle it was as much as €2.00, which "created confusion among consumers".
Rigas Satiksme has said it will appeal the ruling.