A spokesperson for Tesco said the settlement endorsed comparative advertising

A spokesperson for Tesco said the settlement endorsed comparative advertising

Tesco has been ordered to pay damages to discount retailer Aldi over in-store price comparisons in Ireland.

The German chain sued Tesco over how the UK retail giant was comparing prices in its Irish outlets.

According to the Irish Examiner, Aldi alleged Tesco has been "misleading" customers in its in-store campaign by failing to compare like with like.

The case has reportedly been settled ahead of an eight-day hearing scheduled for next week, the publication noted.

Tesco has agreed to pay EUR150,000 (US$194,800) in damages to Aldi and has agreed not to engage in misleading price comparisons with the retailer with regard to criteria such as the quality, nature and origin of a product.

A spokesperson for Tesco told just-food the settlement endorsed comparative advertising, which it said was "good for the consumer".

"Retailing in Ireland is amongst the most competitive in the world. The settlement sets down clearly for the first time the ground rules for how comparative advertising can happen. It is an important part of the competitive environment in retailing and we are pleased that it can continue within the parameters set out."

The spokesperson said Tesco accepts the principles set down in the settlement and will "continue to drive competition and innovation in the Irish market".