Belle Gibson will be pursued by consumer watchdog

Disgraced blogger Belle Gibson will be pursued by Victoria's consumer watchdog over her claims that she beat terminal cancer through healthy food and natural therapies.

Consumer Affairs Victoria was on Tuesday given the green light to take Federal Court action against Ms Gibson and her company - which is in liquidation - for false and misleading conduct.

Ms Gibson could face substantial financial penalties, with $220,000 the upper limit for individuals, and companies liable for fines of up to $1.1 million.

Ms Gibson has been accused of failing to donate $300,000 from the sales of her wellness app, The Whole Pantry, to charity. Penguin Australia Pty Ltd had earlier withdrawn Ms Gibson's book from sale after admitting it had not substantiated her claims about curing her alleged cancer without medication. Ms Gibson's app was also withdrawn by Apple.

The popular blogger took in more than $1 million in profits from her cookbook and wellness app.

On Tuesday, Federal Court Registrar Phillip Allaway granted Consumer Affairs Victoria's application, which means the regulator can commence proceedings against Ms Gibson and her company Inkerman Road Nominees.

They applied for leave because the company - formerly known as Belle Gibson Pty Ltd - is in liquidation.

Ms Gibson is the company's sole director and shareholder.

Neither she nor her company's liquidators were in court on Tuesday.

Counsel for Consumer Affairs Victoria says there is public interest in taking the legal action, "respect of public condemnation of past conduct."

"The company and Ms Gibson ... are said to have been principals in wrongdoing," Carl Moller said.

Earlier this month, Consumer Affairs said its 12-month investigation had found the 24-year-old social media entrepreneur convinced fans she was suffering from terminal brain cancer and had embarked on a quest to heal herself from cancer naturally.

The Melbourne woman admitted in April 2015 she'd never had cancer, stating "none of it's true".

No criminal charges have been laid against Ms Gibson, but Consumer Affairs has examined claims Ms Gibson failed to donate $300,000 from the sales of her wellness app, The Whole Pantry, to charity.

AAP