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Businesses that sell or rent clothing must follow hygiene and safety rules. These rules are set by the New York State Department of State (NYSDOS).
Children's clothing must follow rules about drawstrings. Drawstrings cannot have toggles or knots. Drawstrings for smaller clothes cannot have drawstrings at the neck.
Businesses must wash clothing before a customer can rent it.
NYSDOS has drawstring safety tips here.