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As a textile engineer, I must have to say that cotton fabric is the better thing if the fabric quality is good enough. Or others natural fiber-made fabric is also good. But must need to be a quality test pass. There are lots of quality issues like pH, Colorfastness to water, perspiration, Saliva, Phenolic yellowing, Light ETC. As an example, if your fabric's pH is not a quality test pass, then it can cause itching to the baby's skin.
As a textile engineer, I must have to say that cotton fabric is the better thing if the fabric quality is good enough. Or others natural fiber-made fabric is also good. But must need to be a quality test pass. There are lots of quality issues like pH, Colorfastness to water, perspiration, Saliva, Phenolic yellowing, Light ETC. As an example, if your fabric's pH is not a quality test pass, then it can cause itching to the baby's skin.
Compared to some other developed countries, in the US there are very few laws , and even those aren't enforced. Toxic dyes and other substances in child clothing, shoes and toys are common. No one cares.