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Tesco, the UK's largest supermarket chain, has been ordered by the Court of Appeal to cease using its Clubcard Prices logo following a legal dispute with rival Lidl.

The dispute centered on allegations of copyright infringement and unfair competition related to Tesco's use of a logo similar to Lidl's trademark design.

Tesco to Change Logo Following Legal Battle with Lidl

Lidl launched a lawsuit against Tesco in 2020, claiming that the blue square with a yellow circle logo used by Tesco for its Clubcard prices bore a striking resemblance to Lidl's branding.

Lidl argued that Tesco's use of a similar logo was a deliberate attempt to deceive customers into thinking that Tesco's prices were comparable to Lidl's renowned value offerings.

According to a ruling last year, Tesco's intention was "copying with a view to enhancing the value perception of Tesco's own Clubcard Prices offering by adopting a getup, in the form of a blue background and yellow circle, which already had a proven association with a strong value proposition (Lidl logo) in the minds of consumers."

Tesco Disappointed with Court Decision

Last year, the High Court ruled in favor of Lidl, finding that Tesco's Clubcard logo indeed infringed upon Lidl's trademark and unfairly exploited its reputation for great value.

Despite Tesco's appeal against the decision, the Court of Appeal upheld the ruling, ordering Tesco to halt the usage of its Clubcard Prices logo immediately.

While Tesco expressed disappointment with the court's decision regarding the logo's color and shape, the company assured customers that the ruling would not impact its Clubcard Prices program, which continues offering thousands of deals to Clubcard members weekly.

However, the rebranding process mandated by the court could prove costly for Tesco, with estimates suggesting it could incur expenses of up to £8 million. Moreover, Lidl may seek further compensation for trademark infringement, potentially adding to Tesco's financial burden.

In response to the ruling, Lidl expressed satisfaction with the Court of Appeal's decision, emphasizing that Tesco had prolonged the dispute by appealing the initial ruling, thereby deceiving customers for another year. Lidl called on Tesco to respect the court's decision and adopt a new logo that does not resemble its own.

"We are delighted to see that the Court of Appeal has now agreed with the High Court that Tesco's use of its Clubcard logo is unlawful."

Despite the legal setback, the company's spokesperson reiterated that the Clubcard Prices program will continue to play a central role in rewarding Clubcard members with exclusive deals and discounts.