JUST TO PUT A FEW THINGS IN PERSPECTIVE...
- these regulations have been on the books for children's toys for some time now. Do you see people not selling children's toys on etsy? No.
- The CPSC has enough trouble trying to police the major mfrs (Hasbro, Mattel, RC2, etc) for *toy* guidelines plus all the little guys and imports, and now they have to police children's wear too? Are you kidding?
- I'm not condoning selling unsafe things in the children's market, or not saying that there isn't a potential risk of harm to consumers or to shops for being sued. But to put things a bit more in perspective, you could get sued for just about anything (a child swallowing a button, snap, applique, etc, this is really the least of your worries.
I used to work for one of the big mfrs, I've worked on recalls and have dealt with the CPSC. It's not to say this isn't important or shouldn't be watched, but I think a lot of people are over-reacting.