Jackson, who died in 2009, was criticized for years for his alleged inappropriate relationships with children. Dogged by child-molestation charges, he was never convicted of any crimes involving minors.
OK! Magazine in Australia quoted Carter, now 23, as saying: "Yes, [Jackson] gave me wine. I mean, I could have refused, but I was 15. As for drugs? He gave me cocaine."
But Carter's representative told TMZ Friday the quotes were fabricated.
"Nothing was said that was reported," the publicist insisted.
TMZ said the journalist who wrote the story has not responded to its request for a comment regarding the controversy.