The Federal Court imposed the penalty on Rosemary Bruhn, ruling that her actions were liable to mislead the public, reports news.com.au.

The Australian Competition and Consumer Commission (ACCC) alleged that trading as Rosies Free Range Eggs, Ms Bruhn had supplied free range eggs to 109 businesses in SA including retail outlets, bakeries, cafes and restaurants.

It argued that a substantial proportion of the eggs were cage eggs.

The penalty imposed by the court related to Ms Bruhn's conduct from April 2010 to October 2010 when she supplied 55,790 dozen cage eggs to customers.

"The court's decision should serve as a reminder that the ACCC will take action against suppliers who act unlawfully and represent that eggs are free range when they are not," the ACCC said in a statement on Wednesday (5 September).

As well as the financial penalty, Ms Bruhn was ordered to pay the ACCC's legal costs of A$15,000 and also advise her customers of the court's ruling.