Tesco ordered to stop using Clubcard Prices logo after losing legal battle with Lidl

Tesco Forced to Stop Using Clubcard Prices Logo After Losing Legal Battle with Lidl

In a landmark ruling, Tesco has been ordered to cease using its Clubcard Prices logo following a lengthy legal dispute with rival supermarket chain Lidl. The Court of Appeal upheld a previous decision by the High Court, which found that Tesco’s logo, featuring a yellow circle on a blue square, infringed on Lidl’s copyright and took unfair advantage of its reputation for offering great value.

Lidl, the German discount retailer, initiated the lawsuit in 2020 after Tesco introduced the distinctive logo for its Clubcard scheme. Lidl argued that Tesco had intentionally copied its trademark in an attempt to mislead customers into believing that their prices were comparable. The Court of Appeal’s ruling on Tuesday confirmed Lidl’s claims, prompting Tesco to make changes to its Clubcard Prices logo in the coming weeks.

While Lidl expressed delight over the court’s decision, Tesco expressed disappointment. The two supermarkets have been engaged in a fierce legal battle, with Lidl accusing Tesco of prolonging the dispute and deceiving customers for an additional year. Despite the setback, Tesco reassured its customers that the ruling would not impact its Clubcard Prices program, which offers thousands of deals to Clubcard members each week.

Consumer expert Kate Hardcastle noted that the use of yellow in marketing is common across the industry, but emphasized the importance of protecting brand identity in a competitive market. She suggested that Tesco could turn the ruling into a marketing opportunity by designing a new logo that is both innovative and distinctive. However, branding expert Campbell Rigg criticized Tesco’s marketing team for failing to conduct proper benchmarking research before creating the logo, which could have prevented the legal dispute.

As Tesco prepares to implement changes to its Clubcard Prices logo, the supermarket giant faces the challenge of rebranding while maintaining its competitive edge in the market. The outcome of this legal battle serves as a reminder of the importance of protecting intellectual property and conducting thorough market research in the development of brand identity.