Cancer conwoman Belle Gibson could be fined more than $1 million for claiming she beat a brain tumour by eating healthy food and using natural therapies.
A 12-month investigation by Consumer Affairs Victoria found the 24-year-old social media entrepreneur convinced fans she was suffering from terminal brain cancer and had "embarked on a quest to heal herself from cancer naturally".
The regulator has now applied for leave to take Federal Court action against Ms Gibson and her company, Inkerman Road Nominees - which is in liquidation - for false and misleading conduct.
The Melbourne woman admitted in April 2015 she'd never had cancer, stating "none of it's true".
No criminal charges have been laid but Consumer Affairs Victoria examined claims Ms Gibson failed to donate $300,000 from the sales of her wellness app, The Whole Pantry, to charity.
Consumer Affairs Minister Jane Garrett argues civil action is the most appropriate way to pursue justice for Victorians.
"Selling people snake oil is as old as the hills," the minister told reporters on Friday.
"It (the court action) makes it clear that the state will not be letting this go."
Penguin Australia, publishers of The Whole Pantry book, has avoided court action by co-operating with Consumer Affairs Victoria.
Penguin acknowledged it didn't require Ms Gibson to substantiate her claims prior to publishing The Whole Pantry, and had therefore engaged in misleading or deceptive conduct.
The publisher, in an enforceable undertaking, has agreed to donate $30,000 to the Victorian Consumer Law Fund and will work to ensure any future claims about medical conditions are substantiated.
Statements about natural therapies will be accompanied by a prominent warning.
"This is an important step in ensuring that consumers receive only verified information and are not deceived, particularly where serious matters of health and medical treatment are concerned," Consumer Affairs Victoria director Simon Cohen said in a statement on Friday.
The regulator's leave application will be heard in the Federal Court on May 24.
Ms Gibson could face substantial financial penalties, with $220,000 the upper limit for individuals, and companies liable for fines of up to $1.1 million.
