Family of burnt child in secret payout deal?

NEW ZEALAND: Discount retail group The Warehouse has allegedly made a secret payment to a child badly burnt when his pyjamas caught fire.

A Fairfax newspaper based in Wellington has reported that the retailer has set up a fund for the victim who was injured when his sleepwear - bought from one of the listed group's 128 stores - was set alight.

The report suggested the trust fund money came with a gagging clause that forbade the family from confirming the payment or facing legal action if they failed to comply. The Warehouse has refused to comment on the newspaper's allegations, claiming "any agreement would be confidential".

Since 2004 at least four children, aged between three and 10 have been burnt after sitting in front of heaters in their pyjamas - at least three of these involved sleepwear bought from The Warehouse. The move has prompted several parents to slam the 'low fire danger tag' on the clothing as "misleading" and led to calls for labels to be more specific.

Two subsequent investigations by the country's Consumer Affairs Ministry ruled the nightmare complied with product safety standards. It is understood the ministry is now reviewing the results and whether or not regulations relating to the labelling of children's nightwear needs to be changed.

The Warehuose has confirmed it will sell the pyjamas again next winter but will put labels on all children's pyjamas advising the wearer to stay at least a metre away from heaters.