Residents have complained that the festive campaign, which sees I'm a Celebrity winner Solomon travel to her local mansion, gives viewers an unrealistic expectation of the East London suburb.
"Iceland is trying to paint this angelic picture because it looks better than a two-bed semi," Labour council leader Darren Rodwell told The Sun. "There isn't a house like it in Dagenham."
Watch Stacey Solomon in an Iceland advert below:
A representative for the supermarket chain responded: "The sentiment is intended to convey that at Christmas many people travel back to their home towns."
The Advertising Standards Agency said that the campaign has not broken any rules.
Solomon's cover of 'Driving Home For Christmas' featured in the adverts yesterday landed at 27 on this year's Christmas singles chart.
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