EGG producers would only be able to claim products are "free range" if their farm kept no more than 1500 hens a hectare, under proposed laws.
Greens MP Tammy Franks and Liberal MP Michael Pengilly have joined forces to introduce the law, which would lower the number of chickens per hectare to the accepted RSPCA standard.
"The intention of this Bill is to crack down on shonky egg producers that defraud or mislead consumers by incorrectly labelling eggs that are not free range," Ms Franks said.
The Australian Egg Corporation currently sets an industry standard for free range farms of up to 20,000 hens per hectare.
Ms Franks said farming at such density meant chickens were unable to behave naturally or spread their wings and often fought each other.
Agriculture Minister Gail Gago labelled 20,000 hens per hectare "out of touch with public expectations".
"Most members of the public baulk at that, the thought of 20,000 hens per hectare being considered free range," she said.
While her preference would be for a better industry standard, Ms Gago said the Government would consider "what might be the best model" without disadvantaging SA markets.
Early last month the Australian Competition and Consumer Commission began legal action in the Federal Court against the owner of Rosie's Free Range Eggs for allegedly selling cage eggs.
The eggs had been supplied to retail outlets, bakeries, cafes and restaurants. However, the ACCC's allegations do not relate to free-range eggs that were supplied by Ms Bruhn at the farmgate or at the Adelaide Showgrounds Farmers Market.
Rhode's Free Range Eggs farmer and SA Farmers Federation poultry spokesman John Rhode said he farmed about 40,000 birds, letting them roam at the 1500 per hectare standard.
He said the public was being "conned" by producers farming at much higher densities but still charging for a "free-range" product. "It's the consumer who's being taken for a ride," he said.
Greens party member Rhonda Avard, 63, researches egg farmers on the internet to find producers with the lowest hen ratios.
"I'm very particular about the free-range eggs I buy," she said. "I like to know that the producer of the eggs is either endorsed by the RSPCA or is giving excellent conditions to the animals."
By Lauren Novak, The Advertiser