The association says authorities have been using council taxpayers' money to mount advertising and publicity campaigns designed to recruit support against the review of local government in England.
The organisation says the campaigns amount to propaganda and scare tactics is calling on the Audit Commission, the official local government watchdog, to intervene.
The code of practice on publicity governing what councils can spend and say states that public funds should not be used to 'mount publicity campaigns whose primary purpose is to persuade the public to hold a particular view'.
County councils have said services are under threat and bills will soar. The association believes the review would save money.
Councils accused over 'illegal scare tactics'