Almost everything my boys have is carter's. Luke has very sensitive skin and he has no rash from the clothes or the tagless print. I mean like if I have body spray on my arms and hold him for like a minute, his arms break out in a rash.
ditto Reem and McJeep! No issues. Carters is not my favorite brand (I know, I am weird) but we have a lot of Carters onesies and some outfits with no issues.
Re: Carters baby clothes warning.
Here is some info from the Carter's website. It shows which labels are thought to cause a rash. They are also offering full refunds.
https://www.carters.com/Corporate/tagless_message.aspx
Two Mc Peas In a Pod
Kayla's Grace