The commission ruled that a front-page report in the Luton Herald and Post was "unacceptable and gratuitous" and intruded into grief.
The adjudication follows a complaint from a man whose civil partner, Ameet Mohabeer, had been facing sexual assault charges and had killed himself.
The complainant objected to use of the term "pervert" in the Herald and Post headline. Mohabeer had pleaded not guilty to the charges.
The Herald and Post acknowledged that a claim in the article – that Mohabeer had been due in court a few days before his death – was incorrect, and published a front-page correction and apology.
However, the paper did not believe that the use of the word "pervert" breached the editors' code.
In its adjudication today the PCC said the newspaper was entitled to report the allegations against Mohabeer but, given that he had not been convicted, the use of "pervert" was "unacceptable and gratuitous".
"The presentation of the article so soon after the death constituted insensitive publication," the commission ruled.
PCC director Stephen Abell said in a release: "This case is an important contribution to the commission's case law, which sets out specific standards expected of journalists.
"Reporting death can be a difficult area, with a need for balance between the right of the public to be informed and the need to protect those personally affected by it.
"This ruling by the commission sets down an important marker in reminding editors and journalists that, whatever the circumstances of a particular story, the commission will always expect publication to be handled sensitivity."
The PCC adjudication has been published in today's edition of the Herald and Post, with a front-page trail. It also appears on the paper's website.
Free daily newsletter
If you like our news and feature articles, you can sign up to receive our free daily (Mon-Fri) email newsletter (mobile friendly).
Related articles
- 'Very strong public mood' for 'strict' press regulation, finds poll
- Jack Straw: Self-regulation defies principles of justice
- Lord Wakeham: PCC should be 'stage one' in any legal action
- PCC receives more than 100 complaints over Sun headline
- Sun journalists to be trained in mental health reporting after complaint