I don't understand this either, I have used flanelette sheets for both my children and have never seen this warning
I brought two sets from Target last week, I just went and checked the pack and it does have the warning. It's so small I didn't notice it before.
I've prewashed one set and they are on the cot (baby will be in our room in a bassinette to start with)and I'm still planning on using them but would love an explanation as to why they aren't safe?? Seems ridiculous to sell a product designed for babies and then say it's not safe for them??
I might have a look on the website and see if I can email someone about it.
Bookmarks