Daley was booted out of the house after clashing with fellow housemate Hazel O'Sullivan.
The pair's play fighting turned nasty with Daley ultimately being called to the Diary Room after seemingly grabbing Hazel by the throat.
He warned her: "Respect your f****** elders, before I nut you one.”
The scenes - which led to Daley being kicked out of the house - prompted over 160 complaints to telly watchdog Ofcom which this week published its verdict after a rather long investigation.
Ofcom has ruled that Channel 5 broke the broadcasting code by not warning viewers clearly of the incident in advance, not editing the language used to avoid causing offense and ultimately not dealing with the incident the house in Daley's first conversation with Big Brother.
A report issued said: “In this difficult case, Ofcom’s view is that Channel 5 did take a number of steps to seek to contextualise the offence in this case, including compressing the incident into one broadcast so that viewers could see the outcome, and ultimately evicting Daley from the House as a result of his violent behaviour.
“However, the decision not to edit the material for the purpose of limiting offence – despite its clear potential to cause offence – coupled with the generalised nature of the pre-broadcast warning 40 minutes before the incident and the lack of clarity that Daley’s conduct was unacceptable when Big Brother first intervened led Ofcom to conclude that the offence to viewers was not justified by the context.”