It is obnoxious. I've told them "don't put cream on him unless he is red". They put it on every diaper change. It is bizarre. The cream we use is freaking expensive because we CD. I can't figure out how to break them of this...
Born at 31w3d due to severe IUGR & Placental Insufficiency--2lbs 3ounces

We'll miss you sweet Debbie Girl (4.21.12) and sweet Cindy Girl (8.9.12)

Re: Daycare is obsessed with diaper cream...
At least they're doing it. I know some DCs where they never do no matter how many requests.
I would confront them and tell them your concern. That's really not right for them to do that.
~Benjamin Franklin
DS dx with celiac disease 5/28/10
This is what I was going to say. They are probably just trying to make sure they are doing the right thing.
Our DC does the same thing, but we told them to not use any because of the cloth diapers. We did eventually send in a special CD cream because she was red, but if you don't give it to them they can't use it. You're right though--that stuff is expensive!
We've given up on the CDs though, and they use diaper cream at every diaper change now that she's in disposables.
We get the generic brand from Target or a drugstore. It's about $10 and lasted us almost a whole year!