According to the FDA, 1 in 5 products contain Formaldehyde or Formaldehyde-releasing preservatives (quaternium-15, DMDM hydantoin, imidazolidinyl urea, diazolidinyl urea, polyoxymethylene urea, sodium hydroxymethylglycinate, 2-bromo-2-nitropropane-1,3-diol (bromopol) and glyoxal)
Knowing that many people would recognize this potent ingredient, many cosmetics and skincare companies use formaldehyde releasing preservatives that when combined with water, decompose slowly, releasing Formaldehyde.
Inhalation of Formaldehyde has been linked to Leukemia, tumor growth, endocrine disruption and skin irritation. Not a lot of human studies have been done on the absorption of Formaldehyde through the skin, animal studies have shown that it is in fact absorbed through the skin in to the blood stream.
Formaldehyde shouldn't be in anyone's products, but how it is being included in BABY products is beyond me.