When I was in the UK recently, I saw some exposes on supposedly "free-range" farms. The reporters used hidden cameras to record the atrocious conditions showing many sick and dead birds on excrement-covered floors that had obviously never been cleaned. Dead birds are supposed to be picked up every few hours, but it was clear some of the dead birds had been lying there for days.
Of course, the eggs laid by these sick, overcrowded birds were still sold at a premium, as was their meat. After the expose, the farms were closed down due to health violations, but it makes you wonder how many more such supposedly "free-range" farms are getting away with this sort of thing just because they haven't been unlucky enough to have been the targets of an undercover news story.
Here's an article critiquing "free-range" farms:
http://www.upc-online.org/freerange.html