New Upholstered Sofa Transfers Dye to Clothing

I too would use the scotch-guard, but I would first take a damp rag with as much of the water squeezed out and wipe it down. Do this at least a couple of times while allowing to dry in between. This way you're taking off some of the excess dye just like new clothes bleeds in the washer. Then when completely dry follow the instructions with the scotch-guard.
Hope this helps.

I would think the fabric manufacturer should be held responsible, in the very least there should have been a warning about it. I would go back to the fabric store and complain.

I might try scotch-guard. I was told by a sales person that if I used that on my garden flags they would not fade as much. Good luck. :)

That is one of the hazards of red. I guess I never thought about furniture doing that. But I imagine it is possible. I know I never bought red sleepwear for my kids because my mother in law had the experience years before of red sleepwear having the color rub off on the bedding, and it wouldn't wash out.