UK’s largest supermarket chain, Tesco, confirms plans to revise its Clubcard Prices logo after losing a trademark dispute to rival Lidl, affecting its visual branding strategy.
Tesco, the UK’s largest supermarket chain, is poised for a significant rebranding of its Clubcard Prices logo following a court order that sided with rival supermarket Lidl in a trademark dispute. The legal confrontation stemmed from Tesco’s use of a yellow circle on a blue square for its Clubcard loyalty discount scheme, which Lidl contested as being too similar to its own branding.
After losing the appeal, Tesco confirmed plans to revise its Clubcard Prices branding to align with the High Court’s decision. The revised logo is anticipated to be rolled out in the coming weeks, despite the supermarket’s disappointment over the court’s verdict.
The dispute began when Lidl accused Tesco of “passing off” and infringing on its trademark with the introduction of a similar logo. The Court of Appeal upheld the High Court’s ruling against Tesco, identifying trademark infringement and “passing off,” though it overturned the finding of copyright infringement. This marks a notable setback for Tesco, affecting its visual branding strategy for the Clubcard scheme, essential for offering discounts to its over 20 million members.
Lidl welcomed the court’s decision, emphasizing the importance of protecting its brand and ensuring fair market competition. Despite this, Tesco is committed to maintaining its loyalty scheme’s benefits for customers, assuring that the programme and the discounts it offers will not be impacted by the change in logo.
Legal observers highlight the potential for Lidl to seek compensation for damages, underlining the legal ramifications of the dispute for Tesco. However, Tesco plans to move forward by updating its Clubcard Prices logo, underlining its commitment to offering value amidst a challenging economic climate.
