The FTC does not require you to label hats, but the CPSIA does require a tracking label. It does not differ from other tracking labels, so that makes it easier. It needs to say your (company) name and address, or website. It also needs where and when the item is made. I put what it is made of, but that may be a FTC only thing. I just figure people would want to know that. I think the wool issue is a FTC thing also. Love hats for the little ones!