KFC Australia has pulled all "free to roam" references from its advertising after the Australian Competition and Consumer Commission contested the phrase being used by the fast-food company's suppliers.

The ACCC is alleging that Baiada Poultry and Bartter Enterprises, which supply chickens to KFC, are using "misleading labeling," saying that the barns their chickens are kept in have too high a population density to allow for the range of movement required to qualify as "free to roam." Baiada has said it will strongly refute the ACCC's claims.

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"There is no Australian standard for these products and consumers are paying premiums for these types of products thinking they are doing the right thing by buying them," said Ingrid Just, spokeswoman for Australian consumer group Choice. The matter has been filed in the Federal Court in Melbourne.