Supermarket chain Tesco has agreed not to engage in misleading price comparisons with its rivals Aldi.
Tesco Ireland is also to pay €150,000 damages to Aldi as part of a legal settlement between the two stores.
Aldi is to donate the money to the St. Vincent De Paul.
The chain alleged Tesco has been misleading customers in its in store campaign by failing to compare like with like. For example Tesco's non-vintage claret at €4 was contrasted with Aldi's vintage claret at 4.99.
Aldi sued the supermarket giant for alleged trademark infringement but the case has been settled ahead of an eight day hearing which was scheduled for next week.
Tesco has agreed to pay Aldi €150,000 and has given undertakings not to engage in misleading comparative advertising having regard to a whole host of criteria such as the quality, nature and origin of a product.
A statement from Aldi read: "Aldi is very pleased with the undertakings given to the Court today by Tesco in relation to its inaccurate advertising campaign with respect to Aldi’s products."