It comes weeks after Tesco lost its appeal in response to a ruling that it infringed the budget supermarket’s trademark regarding the use of a yellow circle on a blue background
Tesco has shared a huge change to its Clubcard promotions following a legal row with Lidl.
The supermarket has revealed a new design for its loyalty scheme prices following a trademark battle. Tesco lost its appeal in response to a ruling that it infringed the company’s trademark regarding using a yellow circle on a blue background, The Sun reports. Lidl’s main logo uses a yellow circle, whereas Tesco uses a yellow circle to sell its Clubcard price deal. The Clubcard Prices promotion means that members of Tesco’s loyalty scheme can access cheaper prices on thousands of products by earning points while they shop.
These can be spent on vouchers for money off food, or different reward partner schemes, with one point equating to 1p, or 150 points to £1.50. Originally Tesco said it would respect the judgement by updating its Clubcard Prices logo. The supermarket has nine weeks from the date it lost the appeal – March 19 – to replace more than eight million Clubcard Prices logos. The design on it’s app has been altered, with the yellow circle removed and replaced with a square and rectangle design in the same yellow and blue colouring, but the website still has the old labelling.
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.” And, while the appearance of the promotions will change, the deals will stay the same. Back in 2020, Lidl sued Tesco after it started using the yellow circle. The case was heard at the High Court last year, and the judge identified passing off and copyright infringement for the German retailer on claims of trademark infringement.
The Court of Appeal dismissed Tesco’s appeal that it infringed Lidl’s trademark. Typically trademarks are used as protections for brands and are signs like names and logos. However the court failed to uphold Tesco’s appeal against a finding that it infringed Lidl’s copyright. Copyright is a form of intellectual property which aims to protect the expression of ideas.
When the ruling took place, a Tesco spokesperson said: “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 program. Clubcard Prices, irrespective of its logo, will continue to play a central role in rewarding our Clubcard members with thousands of deals every week.”
A Lidl spokesperson said: “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.” Tesco continues the rollout of unit prices on Clubcard-promoted items in all of its 2,866 stores.
