The site Care2 usually has all sorts of articles on this sort of thing, but all I could find on on iron fabric didn't really give enough information or back up their statements. Here is all I found from an article on shopping green:
Shop for clothes with less textile finishing
“Finishing” is the last step in the processing of many conventional, easy-care garments. Textiles are treated with chemicals to make garments that are miraculously: wrinkle resistant, stain resistant, fireproof, mothproof, anti-mildew, ant-bacterial, and anti-static. The little problem here is that the chemicals used for finishing include formaldehyde, caustic soda, sulfuric acid, bromines, urea resins, sulfonamides, halogens, and bromines. Not things you really want rubbing against your skin or wafting up through your nose. (Not to mention the toxic wastewater run off during production and washing of these items.) The “new smell” of clothes is usually from a sizing that is used to prevent wrinkling during shipping and display in the store—it is temporary and will be rinsed out after a few trips through the wash. The other finishings, however, are heat treated into the fabric and are much more permanent. Watch out for labels like “stain-resistant” and “no iron.”
My DH in a science field would point out that instruments today can detect such minute amounts of chemicals that it's hard to give credence to such claims without reading what tests have been done, noting size of study, amounts detected, etc. However, if one is very sensitive, it would be good to be aware that no iron fabrics could be causing a problem for you.
