Yes baby quilts are part of the CPSIA and also fall under the FTC for care and content labeling. Since baby quilts are meant for children under 4, even if made of lead testing exempt materials, you need to know the phthalate levels since the government classifies a baby quilt as an sleeping aid for a child. Even if you mark the quilt as "a decoration only not to be used on a sleeping infant" you will still need CPSIA tracking labels and the FTC care & content label on the finished product and a GCC kept on file with you other bussiness records.
The consequences by the federal government are the same regardless of where or how in the USA you sell the baby quilt, in fact you can be investigated even if you donate the quilt.
