An Australian gossip magazine that claimed the Royal Family confirmed Harry and Meghan's marriage "was over" was "blatantly incorrect", the press watchdog has found.
Woman's Day published a cover story in May last year that said: "Palace confirms the marriage is over! Why Harry was left with no choice but to end it."
The article on page 12 claimed Prince Harry had been left "enraged and humiliated" over "shock revelations" about Meghan's past, including her "online relationship" with British singer Matt Cardle.
The Australian Press Council ruled on Monday that the headline was "blatantly incorrect and not supported by the article's contents".
It said the headline was "more than just an exaggeration, and that it was misleading" therefore two of the council's main principles were breached.
The council said because the palace did not complain to them "it was reasonable" for Woman's Day to not publish a correction.
However, the magazine, published by Bauer Media, had to release the full adjudicaton in print and online on Monday.
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During the investigation, Woman's Day argued that weekly celebrity publications provide "light entertainment" and readers "understand this is the case".
It said it would be "unreasonable to hold such publications to a standard similar to that of other news media" and readers "expect a level of exaggeration in coverlines and headlines".
Woman's Day also said nobody had complained about the article to them.
Harry and Meghan have been highly critical of the press, and have taked legal action against several media organisations.
Prince Harry has spoken of his concern for the safety of his wife and said last year every time he hears a camera click it takes him "straight back" to the night his mother Princess Diana died.
The duke filed claims in September against the owners of The Sun and the Daily Mirror over allegations his voicemail messages were illegally intercepted in the early 2000s.
Days later, Meghan took legal action against the Daily Mail for publishing a letter to her estranged father Thomas Markle – who has promised to appear in court to testify against her.