The consumer watchdog is taking a free-range egg producer to court, alleging it has made false claims that its eggs are truly free range.
The Australian Competition and Consumer Commission has taken action against the companies behind the Ecoeggs, Field Fresh Free Range Eggs and Port Stephens egg brands, alleging false and misleading use of the "free range" label.
"The ACCC alleges that the hens used to produce the eggs for the Free Range Egg Farms business were not able to move about freely on an open range on an ordinary day because of the farming practices and conditions of the farms where the hens were kept," the regulator said in a statement.
Free Range Egg Farms (FREF) is owned by Derodi Pty Ltd and Holland Farms Pty Ltd, the companies against which the ACCC is taking action.
FREF said it had sought to fully co-operate with the ACCC's investigation and had recently made changes to its farming practices.
"FREF is a small, family-run farming business," it said in a statement.
"FREF is disappointed to learn that the ACCC is bringing proceedings against it in relation to alleged conduct that occurred some time ago."
FREF said the allegations related to a time when the egg industry was seeking a code on free-range standards.
The ACCC said the case was part of a wider investigation into free-range claims made by egg producers.
In September, egg producer Pirovic Enterprises was fined $300,000 in the Federal Court over misleading representations in its labelling and promotion of eggs over two years until January 2014.
ACCC chairman Rod Sims said free range meant more than animals having potential access to the outdoors.
"Consumers expect free range to mean animals genuinely can and do go outside on most days," he said.
The matter will be heard in the Federal Court in Sydney on February 4.
