One of Western Australia's biggest egg producers has been fined $750,000 after the Federal Court found it deceived shoppers by falsely labelling some of its products free range.
The Australian Competition and Consumer Commission brought the action against Snowdale Holdings over its farms in Carabooda and the Swan Valley in Perth's north, which produced brands including Eggs by Ellah.
The company must also pay $300,000 in court costs and has been ordered to undergo a compliance program.
The Federal Court heard last year that half of the chickens probably never got outside because the sheds were overstocked and had only one exit, which was too small.
In his May 2016 judgment, Justice Antony Siopis said Snowdale's carton labels gave no indication the hens had to compete with up to 17,000 others before they could even exit the steel sheds.