Josh Frydenberg's campaign team has agreed to cover over a photograph of a group of scouts featured on election posters after receiving a complaint from one of the subjects in the photo.
Taken five years ago, the photograph shows Mr Frydenberg saluting alongside nine Scouts Victoria members.
It has been printed on campaign corflutes located around the seat of Kooyong in Melbourne's inner-east.
One of the scouts in the photograph told the ABC they did not consent to its use and complained to Mr Frydenberg's office about the poster earlier this week.
They said they were told by his office the image would be "covered with a sticker" over the next few days.
"I did not give permission for my photograph to be used in this way so I'm glad they are going to cover it over," said the Scouts member, who asked not to be identified.
Scouts Victoria's own guidelines for "local political engagement" explicitly forbids the Scout "brand, our uniform and youth members" from being used to support any candidate or political party.
"We do not involve ourselves in any election materials like brochures, posters and billboards," the guidelines read.
Scouts Victoria did not respond to questions about whether Mr Frydenberg's campaign sought permission to use the image and would not comment on whether the advertisement breached its guidelines.
"It is common for photographs to be taken while doing so and we understand that sometimes they may use images for promotion," Scouts Victoria said in a statement.
"We hope that by providing opportunities for all parties to engage with scouting, we remain bipartisan and balanced."
It is understood the photograph was taken when Mr Frydenberg visited a scout troop about five years ago.
Mr Frydenberg's electorate office confirmed it would remove the image.
In a statement, the Treasurer was described as a "strong and effective advocate for his local community".
It is the second time this week Mr Frydenberg's campaign has withdrawn electoral advertisements featuring non-profit groups.
On Wednesday, the campaign pulled down a Facebook video advertisement featuring Guide Dogs Victoria CEO Karen Hayes endorsing Mr Frydenberg's re-election in the hotly contested seat.
The ACNC website warns charitable organisations will be disqualified for "promoting or opposing a political party or candidate for political office".
The Treasurer said on the campaign trail on Wednesday that the controversy around the Guide Dogs Victoria endorsement was "confected outrage".
"It's an inconvenient truth for these fake independents that I'm receiving public recognition from community organisations that I've helped substantially for more than a decade," he said.
Despite enjoying a high profile on the national stage, Mr Frydenberg finds himself having to boost his local credentials to fend off a determined challenge by independent candidate Monique Ryan.
He holds the seat by a 6.4 per cent margin.
