Yes Luvs diapers can cause a child to break out in rashes if they're allergic to the material or chemicals that the diapers are made of.
My 2 year old nephew was breaking out in rashes and hives when he was wearing Luvs diapers. Now he wears honest brand diapers from honest.com
The honest.com diapers are chemical free.
Some children also break out in rashes from the pampers brand diapers as well while other kids wear the pampers without a problem.
It just depends on whether the child is allergic to a certain brand of diaper or not.