In May 2008, the BBC Watchdog programme alerted viewers that a number of people were reporting itches, blisters, burns and rashes after buying imported Chinese leather sofas.
The reason: sachets containing the chemical dimethyl fumarate (DMF) had been used by Chinese manufacturer Linkwise to prevent mould from growing on their leather sofas during transportation and storage.
Unfortunately, the chemical, which is sometimes used as a fungicide, led to severe allergic reactions in some people using the sofas.
Tests have shown that DMF can cause severe eczema, a term referring to a range of skin conditions which are difficult to treat. The allergic reactions occur when the substance warms up.
Consultant dermatologist Dr Sandra Winhoven explained the condition at the time: 'The substance that's causing the sofa dermatitis outbreak is a fungicide, and this fungicide has a very low vapour point. So when it gets warm, more of it gets released.' As a result, the summer months led to higher numbers of allergic reactions.
Symptoms of eczema
Eczema, which is sometimes known as dermatitis, can refer to a range of unpleasant and distressing symptoms including itching, blistering, redness, swelling, dryness, crusting, flaking, cracking, oozing and bleeding of the skin. These symptoms can be very damaging to a person's quality of life, and some of the sofa rash sufferers reported symptoms of depression as a result.
With up to 50,000 households having been sold a contaminated sofa, and many people suffering from increasingly severe reactions, sufferers were often unaware that the reaction they were experiencing was connected to their sofa.
Some sufferers even unwittingly aggravated their injuries by staying at home to recover from their symptoms, thereby further increasing their contact with the problem sofa.
How the stores reacted
The sofas were sold by Argos, Land of Leather and Walmsley Furnishing. After learning of the problem with their sofas, the shops selling them responded in different ways. According to a Daily Mail report from June 21, 2008, Argos, who had sold the most contaminated sofas, withdrew the sofas from their shops and notified buyers, contacting them to arrange collection of the products.
Land of Leather, meanwhile, withdrew the sofas but was criticised for not notifying buyers, while Walmsley said they had removed the sachets from sofas they sold after they learned of the issue, though they also did not recall the sofas which had already been sold, as Argos had done.
Claiming compensation for sofa rash
In the UK's largest ever consumer injury claim, thousands claimed for compensation against the stores where they bought their sofas. Compensation is expected to total up to £10m for this initial class action.
Along with the thousands already claiming compensation, an estimated tens of thousands could have suffered or still be suffering from burns which have not yet been linked to their sofas. These cases could lead to further claims for compensation.
If you have been affected by a 'toxic' sofa and experienced skin problems as a result, you could be entitled to claim compensation for your injuries and money lost due to time off work.
National Accident Helpline can help you make a sofa burn claim. We will put you in touch with a specialist personal injury lawyer to help you with your claim.
Filed under Health Insurance by on Sep 3rd, 2010. Comment. 
Imagine the scenario where you could make an investment that has the opportunity for growth in the financial markets and comes with a guarantee that it won't lose money. No, this is not the stuff of dreams. In the real world it is called a segregated fund and you can get one if you are a Canadian citizen.
Now, that we're all excited lets get right to it. Segregated funds are professionally managed portfolios provided by insurance companies that have a guaranteed return on maturity or upon the death of the investor. The odd name is based on the fact that these funds are not part of the insurance company's assets but rather from a separate pool of money dedicated to paying out the holders of the policy.
These funds are similar to mutual funds because they are professionally managed, offer diversification, have a variety of different types of focus to choose from, the profits are taxed unless these funds are held in a retirement account. The big difference is that segregated funds are variable annity contracts provided by life insurance companies that usually guarantee a return of at least 75% if held over a period of at least 10 years.
Besides the guaranteed return there are a few other benefits of segregated funds:
1) Reset options - Most segregated funds have the option of 'resetting' the investment amount to include the gains made in the portfolio. Their usually a maximum number of increases permitted depending on the contract and also the increase in the amount could extend the date of maturity of the investment.
2) Protection from creditors - As long as the annuity contract has existed for at least two years, and estate taxes are not owed, the investment held in segregated funds is not accessible by creditors. Even if the account holder files for bankruptcy or faces other financial difficulty the beneficiaries of the life insurance have first rights to the annuity.
3) Liquidity - Investors can usually withdraw upto 10% of the investment amount each year without a penalty. If these funds are held in retirement accounts then this figure increases to 20%.
4) Estate Planning - The process of wealth transfer is faster and cheaper because the investment in segragated funds is not subject to probate. The funds go directly to the account holder or the beneficiary.
As expected there a few disadvantages associated with segregated funds:
1) The cost of investing is higher than that of mutual funds.
2) Early redemptions above the limits usually have penalties upto 6% in the first year but they decrease by 1% in subsequent years to 0%.
3) If you decide to change the area of investment there can be additional fees and there is a limit on the number of times you can initiate such transfers.
Overall, segregated funds provide a great investment opportunity for all with room for growth and protection from losses.
Want to maximize profits by trading penny stocks? Visit http://www.stock-trading-made-ez.com/ for the stock trading strategies that work for you.
Filed under Health Insurance by on Sep 3rd, 2010. Comment.