Tesco Ireland has today (7 Dec) agreed to pay damages of €150,000, plus costs, to Aldi in a battle over alleged trademark infringement in supposed misleading price comparison advertising by the Britain-based retailer.
In its action initiated last May, the Germany-based discounter alleged an in-store price advertising campaign by Tesco included inaccurate, misleading and unfair comparisons of the prices of products sold by the rival retailers. According to an affidavit, Aldi Stores (Ireland) group buying director, Niall O'Connor, said that the use of the Aldi trademarks in banners displayed in Tesco stores earlier this year was "the final straw". The group said it had repeatedly brought the infringement of trademarks to the attention of Tesco Ireland since 2009, and "regrettably had no alternative but to issue proceedings for trademark infringement in the Commercial Division of the High Court."
A spokesperson added, "Aldi was disappointed that no action appeared to have been taken and Tesco continued, to which may have had the effect of inducing consumers into making purchasing decisions they may not otherwise have made."
Among the allegations made by Aldi was the comparison of the price of mint humbugs which stated the weight of both retailers' products was 250g, when the weight of the Tesco bag was actually 200g. The discount retailer also claimed that a comparison of the price of an Aldi maple syrup product with that of Tesco was inaccurate and misleading as the Aldi product contained 100 per cent Canadian maple syrup, while Tesco's contained only 40 per cent Canadian maple syrup.
Following the settlement, Tesco Ireland has given an undertaking that it will not display misleading comparisons of product prices, specifically relating to fresh food products such as eggs, meat and bread without clearly specifying Irish provenance, where appropriate. Similarly, it will not compare prices of products containign entirely different substances, such as marmalade and tuna chunks.
Aldi accepted that Tesco Ireland was entitled to make use of its trademark in comparing goods, but maintained that this must be in accordance with honest practise and not detrimental to Aldi trademarks. It added that any such use must specifically be in accordance with the EC (Misleading and Comparative Advertising) Regulations 2007 and the Consumer Protection Act 2007.
O'Connor, said, "The effect of today's undertakings is that consumers can expect and demand clear, transparent and accurate information on comparative advertising to enable them to make properly informed decisions about what they buy and who they buy from."
Tesco Ireland said in a statement that the Irish grocery retail market is among the most competitive in the world. It said that the settlement procedures endorse price comparison advertising, which it maintians is beneficial for consumers.
The settlement was agreed in the Commercial Division of Ireland's High Court, just days before the hearing was due to take place. Aldi has said it will donate the €150,000 damage payout to St Vincent de Paul, the leading Irish charitable voluntary organisation, founded in Paris in 1833. (7 Dec)
© 2012 - ESM: European Supermarket Magazine
