Argo Homebase

Argos and other retailers deal with chemical burn fallout

Author

By The Drum Team, Editorial

April 26, 2010 | 2 min read

Major retailers including Homesbase and Argos were dealing with the PR fallout after a judge ordered them to pay £20m in compensation after chemicals in their sofas burned customers

It is estimated that up to 100,000 sofas were sold through the stores – and the now defunct Land of Leather – which treated with mould resistant chemicals that in actual fact produced a caustic gas that burned the skin of those who used them.

It is claimed two people may have lost their lives as a result, and several others have suffered permanent scars and injuries.

The sofas where manufactured in China where anti-fungal sachets of dimethyl fumarate were inserted.

When the problem caused by this chemical first came to light some of the companies did contact customers about a health and safety issue, but were not explicit about the specific problem. However, when customers did complain they were offered a refund or replacement.

PR experts say because of the magnitude of the issue retailers could have found themselves in a difficult position. An early admission of liability may have negated insurance policies which will now pay for the bulk of the compensation claims; which will be around £9,000 per claimant.

Land of Leather, for various reasons, breached the terms of its policy, so its former customers will get nothing.

After the ruling a spokeswoman for Argos apologised to any customers who may have been affected by skin irritations linked to sofas manufactured by Chinese-supplier Linkwise.

“We are pleased that the court has granted the Group Litigation Order today, which will help with the management and speedy resolution of the claims,” she said.

Argo Homebase

More from Argo

View all

Trending

Industry insights

View all
Add your own content +