According to ABC, the Egg Corporation, which represents many commercial egg producers, has proposed the stocking density at 20,000 hens per hectare.

In a letter to parts of the egg industry, the Australian Competition and Consumer Commission is asking for views.

The ACCC says it must be satisfied the new standard would not be to the detriment of the public.

The new standard has outraged free range egg producers, who say the hens per hectare number is way too high and is deceptive for consumers.

In addition, the South Australian upper house passed legislation limiting free range production to 1,500.

There's similar proposed legislation in New South Wales.

Queensland already has a 1,500 bird per hectare production limit on free range eggs.