Milkio Foods Limited had descriptions like '100 per cent Pure New Zealand' and 'from the clean green pasture based dairy farms in New Zealand' on its ghee products - despite using butter imported from India.
It also used false and incomplete information to retain approval to use the FernMark logo - a trusted symbol to identify products made in New Zealand.
The Commerce Commission was referred the case by the Ministry for Primary Industries and charged Milkio with 15 breaches of the Fair Trading Act.
The company pleaded guilty to the charges.