The consumer watchdog has started legal proceedings against two large-scale egg producers accused of misleading consumers by falsely claiming their products were free range.
The Australian Competition and Consumer Commission has filed federal court proceedings against Western Australia-based Snowdale Holdings and Pirovic Enterprises from New South Wales.
It's alleged the companies marketed their eggs as "free range" and represented them as having been produced by hens who were farmed in conditions where they were able to move around freely.
In reality, the ACCC said the hens were housed in crowded barns and unable to move around freely.
ACCC Commissioner Rod Sims said inaccurately labelling eggs as free range mislead consumers into paying higher prices.
"The ACCC's concern is simply to ensure that the labelling of eggs accurately reflects the particular farming practices of the producer and the expectations of a consumer making purchasing choices based on those representations," he said.
"Credence claims such as free range, organic, place of origin or country of origin are all powerful tools for businesses to distinguish their products, but misleading consumers who may pay a premium to purchase such products damages the market and is unfair to competitors."
The court proceedings against Snowdale are set to start with a directions hearing in Perth on January 24, while a directions hearing in the Pirovac case will be held in Sydney on February 4.
