No it's not faulty or toxic and is completely normal. We only use premium eco-friendly water-based inks on our garments. After printing our garments are then 'baked' to set the ink. This can give off a slight odour from the ink and some of this can sometimes be retained when the item is bagged in its protective compostable packaging. This odour is harmless and will disappear completely once removed from the bag and left to air or after the first wash.