LONDON—Hundreds of U.K. consumers who suffered severe burns from toxic sofas manufactured in China will receive a combined compensation payout of US$30 million.
The High Court in London approved a settlement for over 1,500 Britons, in what is believed to be the largest consumer group litigation in British history. The case is the latest in a string of lawsuits for tainted products made in China.
The victims received skin burns and peeling from a chemical called DMF (dimethyl fumarate) that was found in the leather sofas manufactured by Chinese firms Linkwise and Eurosofa. The chemical was used to treat the sofas to prevent mold during their transit from China and subsequent storage.
Others suffered breathing problems and irritation of the eyes.
“Many suffered serious health problems, simply because of the new sofa they chose,” Richard Langton, a senior litigation partner at Russell Jones & Walker who led the group action, said in a statement. “At the start there was a real fear factor as nobody knew the cause. The doctors took nine months to identify the chemical. Some people thought they had skin cancer or were dying.”
Yvonne Dalton from Bristol told the BBC that her sofa still gave her chemical burns one year after purchase. Dalton said she started having problems in April 2008, thinking she had an insect bite; by March 2009 she had been off work for two months.
Creams, lotions, antibiotics, steroids, and two biopsies later, the cause was found—her leather sofa that was made in China.
“The skin just started peeling away all the time,” Dalton told the BBC. “It was very, very painful, I couldn’t sleep at night, I couldn’t walk about, I couldn’t drive.”
The EU has now banned the use of DMF in leather sofas.
“We believe many sofas are still in use with DMF in them,” Langton said. “Anyone who develops symptoms should seek urgent medical advice. Anyone who has not registered a claim yet, should seek help as time is running out to bring a claim.”
The U.K. action over toxic sofas was brought against three U.K. retailers—Argos, Land of Leather, and Walmsleys. All three admitted liability. In London on Monday, a court heard that between 1,500 to 2,000 victims could receive between $1,815 and $15,400, depending on the severity of their symptoms.
The compensation will affect only those who bought their products from Argos and Walmsleys. A previous High Court ruling found that 300 customers who had bought the defective sofas from Land of Leather were not entitled to compensation, after the furniture firm went into administration in January 2009. That decision is likely to be challenged in the Court of Appeal.
Fears over the safety of Chinese-manufactured products have risen in recent years.
In 2008, it emerged that Chinese milk manufacturers had mixed powered products with the toxic chemical melamine—leading to thousands of babies becoming ill and several deaths were recorded.
Earlier this month, a New Orleans judge awarded seven families more than $2.6 million in losses caused by toxic Chinese drywall in their homes. Judge Eldon E. Fallon ruled against defendant Taishan Gypsum Co. Ltd., the Chinese manufacturer of the drywall.
But, there is no guarantee that the families will get the money, Orlando said. There is no recourse if the defendants refuse to pay.
“We can’t do anything without the money,” she said from the home the family is now renting. Taishan Gypsum did not contest the lawsuit.
The judgment comes less than a week after the U.S. Consumer Product Safety Commission (CPSC) recommended Chinese drywall-tainted homes be gutted.
The CPSC report called for removal of all possible drywall with issues, all fire safety alarm devices, all electronic components and wiring, and all gas-service piping, as well as the fire-suppression sprinkler systems.
Some Chinese-manufactured drywall types were found to emit significantly larger amounts of hydrogen sulfide, the chemical believed to cause corrosion, compared to other drywall. Certain samples tested by investigators showed 100 times higher levels of hydrogen sulfide compared to the drywall manufactured outside of China that was tested.
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