What is the CPSIA?

What information has to be put on the label or alternatively, somewhere on the product and/or its packaging?

the name of the manufacturer or private labeler
the location of production (city, state/province, and country)
the date of production OR a mark, such as a batch number or cohort number, that you can use to look up the date [...]

“Upstream certification” means being allowed to use the test results of a manufacturer of supplies to certify that a product is lead-free or phthalate-free.

Products are exempt from labeling when it is not “practicable” to label them.

“Permanent” means reasonably expected to “remain on the product during the useful life of the product.”

CPSIA requires the following items to contain no DINP, DIDP and DnOP (the 3 prohibited phthalates) and less than 0.1% of phthalates DEHP, DBP or BBP (the 3 restricted phthalates):

toys for children of any age must not have any of the 3 prohibited phthalates
toys that can be placed in a child’s mouth must not have [...]

No, if your product is still intended for use primarily for children under 12 your product still falls under the CPSIA. In addition, by marketing and selling the clothes as a toy, what once may have only needed lead testing would now need phthalate testing as well.
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