Analysis: It's true that baby carrots (aka "cocktail carrots") were originally produced by cutting and trimming odd-shaped or broken carrots into a uniform, smaller size (though now they're made from carrots grown specifically for the purpose).
It's also true that baby carrots are typically washed in a chlorine-and-water solution before packaging (as are other ready-to-eat fresh vegetable products, such as bagged salads).
None of this is harmful to your health, says Dr. Joe Schwarcz, professor of chemistry at McGill University. The whole point of washing vegetables with chlorinated water is to protect consumers' health by reducing bacteria that could cause foodborne illnesses.
The "white covering" mentioned above which sometimes appears on the surface of refrigerated carrots (known as "white blush" in the industry) is a harmless discoloration resulting from moisture loss and/or abrasion during storage. It has nothing to do with chlorine and does not affect the taste or nutritional value of the carrots.