I was hesitant to purchase this teepee given the reviews about the smell, but I decided to take a chance even though my son and I are sensitive to chemical odors. When it arrived, I was thrilled to see how well made and attractive it is, but it definitely smelled. My poor son would run into the teepee, last about 10 seconds, then crawl out complaining about the headache the odor was giving him.
Fortunately I ignored the spot-clean instructions and followed the advice of others here. I washed the teepee in cold water (to keep it from shrinking) with unscented, hypoallergenic detergent. Then I dried it on low. Voila! The smell was completely gone without the use of scented detergents or fabric sheets. My two children now live in this teepee! I probably washed off the fire retardant, but we couldn't tolerate that fishy chemical smell.
Other points -- As mentioned in previous reviews, the teepee is much shorter than you might expect. I'm 5' 3", and when it's erected the top of the canvas is at my shoulder. My 5-year-old son can just stand in it, but he probably won't be able to for long. Not that it matters to us. They still love the teepee and I imagine they'll cram into it for years to come.
Also, this teepee breaks down beautifully for storage. I wasn't sure where I'd keep the 6" poles, but they break down easily into 3" sections. The canvas is sturdy but lightweight, and it folds down nicely. Storage won't be a problem.
All in all, we're happy with this purchase!