UPDATE: AUSVEG has applauded the fining of Coles and Woolworths for passing off imported produce as Australian grown.

The NSW Food Authority slapped the supermarket giants with fines for incorrectly labelling imported fruit as Australian produce in two Sydney stores.

A Woolworths store in Newington was fined $1540 after being caught selling lemons from the USA as Australian grown, while a Coles outlet in St Marys received an $880 ticket for a similar infringement involving grapefruit from Israel.

Both have been placed on the NSW Food Authority's Name and Shame register for 12 months.

Woolworths announced today it was changing its country of origin labelling.

The supermarket giant said it would label all fresh fruit and vegetables with countries of origin instead of using the legislated term of "a mix of local and imported ingredients".

Woolworths Fresh Food general manager Pat McEntee said 97 per cent of the supermarket's fresh fruit and vegetables were grown in Australia.

"So while only 3 per cent of our produce comes from overseas we want to make it easier for our customers to know exactly where their food comes from so they can make an informed decision for their family," Mr McEntee said.

AUSVEG communications and public affairs manager William Churchill welcomed the fines.

"While the fines from today are a drop in the ocean to the supermarket giants it sends a clear message that inaccurately labeling imported produce will not be tolerated," Mr Churchill said.