Tesco make major Clubcard change after legal battle with Lidl
Tesco shoppers logging on to their supermarket app will see a change to their Clubcard after a legal battle with rival Lidl. The German store claimed Tesco was infringing its trademark with its bright yellow and blue Clubcard design.
Last year, the German discount supermarket won its High Court claims of trademark infringement, “passing off” and copyright infringement against the rival supermarket over the use of yellow circles. Tesco denied infringement and took a challenge to the ruling to the Court of Appeal in February, arguing there was “no basis” for the High Court judge, Mrs Justice Joanna Smith’s, decision.
But in a ruling last month, Lord Justice Arnold dismissed the UK’s largest supermarket chain’s bid to overturn the claims of trademark infringement and “passing off”. However, Lord Justice Arnold did overturn the previous finding of copyright infringement against Tesco.
Lidl has used the yellow circle with blue background in the UK since 1987. However Tesco began to use it on its "Clubcard Prices" sign in about September 2020, to signal the thousands of products which members of its loyalty scheme can get cheaper.
But now, following the decision, Tesco shoppers logging on to the Tesco App will find the circle is now missing from the offer products. Instead the logo has been replaced with a square and rectangle design.
However it has continued to use the same bright blue and yellow colours to alert shoppers to the deals. A spokesperson told The Sun: "As we start to roll out our new Clubcard Prices logo, we're laser-focused on the fantastic offers for our Clubcard customers with around 8,000 deals every week on everything from washing powder and store cupboard staples to clothing and homeware."
Speaking after the Court of Appeal ruling a Lidl spokesperson said: “Last year, The High Court ruled that Tesco’s Clubcard logo was copied from ours and infringed our trademark rights, allowing them to unfairly benefit from our longstanding reputation for value while misleading its customers.
"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. We expect Tesco now to respect the court’s decision and change its Clubcard logo to one that is not designed to look like ours.”
A Tesco spokesperson said at the time: “Our customers always tell us just how important Clubcard Prices are to giving them great value – and it’s been a key reason why we’re consistently the cheapest full-line grocer. We are disappointed with the judgment relating to the colour and shape of the Clubcard Prices logo but would like to reassure customers that it will in no way impact our Clubcard Prices programme.
“Clubcard Prices, irrespective of its logo, will continue to play a central role in rewarding our Clubcard members with thousands of deals every week.”