A duck processing company has been fined $360,000 in the Federal Court in Melbourne, for misleading advertising.

The Australian Competition and Consumer Commission (ACCC) launched proceedings against the Luv-A-Duck company.

The company website and packaging claimed the ducks were "grown and grain fed in the spacious Victorian Wimmera wheatlands."

The company, based at Nhill, in western Victora, also claimed its ducks were "range-reared and grain fed."

The company has admitted its ducks did not spend anytime outside of the barn.

Justice Jennifer Davies has also ordered the company pay $15,000 in court costs and amend its advertising.

The ACCC says checking the credence of claims, particularly in the food industry, is a new priority area.