The Funky Costume is obtainable through Account Upgrades and Trading. It is a tribute the 1970's, hence
"funky" in the name. Old Funky pets were green with orange, brown, and white swirls with a sweatband. New Funky pets can now have various colors like violet or orange. The costume also shows flowers, attributing to the Vietnam War ending in 1975.
Link: http://www.marapets.com/petcolours.php?do=colours&id=Funky