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Updated 10am: Toxic Bath Products

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The “Campaign for Safe Cosmetics” warns parents about traces of possible cancer-causing substances in baby products.

The companies that make those products are fighting back calling the report cynical, shameful and patently false.

The environmental group behind this consumer campaign has done lots of studies on chemicals in personal care products.

This latest one involves two substances: formaldehyde, and dioxane.

Formaldehyde is a preservative.

It's in the air we breathe and can even be released from some cooked vegetables.

The EPA also calls it a possible carcinogen.

Europe, Canada and Japan regulate formaldehyde in cosmetics.

The U.S. doesn't.

The FDA doesn't believe it poses enough risk.

But the campaign for safe cosmetics is concerned.

They tested 28 children's toiletries, major brands, and found small amounts of formaldehyde in 23 of them.

The campaign also tested for the manufacturing byproduct "1-4 dioxane" and again, found trace amounts in two-thirds of these products.

Neither formaldehyde nor dioxane is listed on ingredient labels.

Cosmetic companies say you need not worry.

They claim, and the FDA agrees, that in trace amounts, these substances pose no risk.

The industry's top scientist used to run FDA's cosmetics program.

He said the report is misleading.

Click here to find out if the products you use were included in the report.

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