One of WA's biggest egg producers has been slugged more than $1 million after it deceived shoppers by falsely labelling some of its products free range, and consumer class action may follow.

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, where the company produced brands including Eggs by Ellah.

The farms have since been closed but Snowdale still produces eggs at a large Gingin operation, where it claims hens are stocked at no more than 1,500 per hectare.

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