Just in case some of you weren't aware of this, check out this article. Apparently some clothing from their Fall 2007 line uses inks that may give children rashes. They are not recalling the clothing but would advise you to stop using it if your child gets a rash from it (duh).
I do like Carter's clothes because they are super cute and also reasonably priced. Luckily I do not currently own any of the clothes from that time period. (Yes I do have some because I am insane & buy baby clothes and keep them in the closet.) The rash causing clothes were sold at their own retail stores, Sears, JC Penney and Kohls.