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Legal action initiated by The a2 Milk Company against dairy multinational Lion over its milk labelling will explore the health claims around A2 milk protein.

The dairy upstart, which has won market share on the back of its healthier milk protein platform, initiated the action against Lion which two years ago began to use the claim “Naturally contains A2 protein” on its milk packaging.

The claim, according to a2 Milk, is misleading and deceptive because it created the false impression that consumers were buying A2 milk, which in fact Lion's products contain both A1 and A2 proteins.

The action was launched in the Federal court last month, and this week Lion said that as well as protecting its claim, it was planning to scrutinise the science behind a2 Milk's health-related claims, according to a Fairfax Media report.

Lion claims a2 promotes the milk as having certain health benefits and so it will be looking into the basis of those health benefits and talking to experts, and a2 Milk said the this could lead to a much bigger case in terms of expert evidence.

Justice Michael Wigney said such a cross claim would be a "game changer", according to the report.

"It does seem to be a game changer, because as I read the pleadings ... there didn't seem to be any issues about science," he said.

The next hearing will be held in September.

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