Julia Sloane's lawyers have written to the Human Rights Commission (HRC) claiming she was "defamed" and "bullied" by race relations commissioner Dame Susan Devoy.
Last week on The Real Housewives of Auckland, Sloane used a racial slur against one of her castmates.
When the news broke, Devoy commented telling the Herald: "I do not think that ignorant, overt racist behaviour is part of Kiwi culture so we all need to call it out when it rears its very ugly head.
"People like Julia need to understand that using words like that is not how we roll here. That is not us."
It's understood Sloane's complaint stems from Devoy's comments about her being used to highlight the HRC's That's Us campaign which launched on September 1.
HRC spokesperson Christine Ammunson says the Commission "vehemently denies" Sloane's allegations, and will continue to comment on issues "that are in the public domain - whether they be relating to a politician's speech, a rugby game or a reality TV show".
Ammunson added that the That's Us campaign was not launched in response to Sloane's comments and has been in development since 2014, but said otherwise the HRC has no further comment.
Sloane's representatives declined to comment.