The supermarket giant chose to boycott the Food Standards Agency advice and launch its own labelling system, along with several other stores, which is more difficult for shoppers to understand, according to a survey carried out by consumer group Which?
Damningly, the research shows that Tesco's Guideline Daily Amount colour code for showing levels of salt, sugar and fat in processed food confused nearly two-thirds of consumers.
The survey of 636 people found that 86% understood the nutrient levels shown on Tesco labels compared to 97% for the FSA system. However only 37% understood the use of colour on the supermarket's nutrient labels.
The FSA traffic light system, which highlights the nutrient levels using different the colours red for bad and green for good, has been adopted by Tesco rivals Sainsbury's Asda, Waitrose and the Co-op.
Sue Davis, chief policy advisor for the government, said: "It is confusing for consumers if our supermarket shelves are full of different, contrasting food labels."
Tesco claimed the official system would confuse shoppers because some products were healthy despite having a red light, such as orange juice, which is high in sugar.
Several food manufacturers including Kellogg's, Nestle, Danone, Kraft and Pepsi intend to introduce a version of the Tesco Guideline Daily Amount system, but without colours.
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