Dairy Farmers, the Australian dairy group, has pledged to tighten up its internal controls in a bid to prevent the mis-selling of cheese, which has led to the country's competition watchdog taking the company to court.

Last week, the Australian Competition and Consumer Commission said it had filed a suit at the country's federal court for "false, misleading and deceptive conduct" around the packaging of cheese brands Mil Lel and Westacre.

The ACCC claimed that, between February and March, Dairy Farmers supplied "Romano-style cheese packaged and labelled as Parmesan-style cheese".

The ACCC said the company had therefore "misrepresented the type of cheese packaged and its nutritional attributes".

The watchdog is demanding Dairy Farmers publicly admits the wrongdoing and assures it will not repeat the alleged actions in future.

The dairy firm said it had "co-operated fully" with the ACCC once the Commission had drawn the issue to its attention.

Dairy Farmers insisted it "places the highest priority on providing Australian consumers with the best quality products" and said it has "instituted additional processes to help ensure such an incident does not occur again".