Definitely a possiblity
I have a lot of decorations that I don't like. I didn't buy them though.
The ones geared to kids seem to be made with crappier type materials. Some members have mentioned the sponge bob ones have caused problems.
If you seen any of my pictures, I have a orange octopus decoration and before it was removed I noticed this weird slimy cloudy fungus looking stuff on the outside.
I rinsed orange octopus & left him on the windowsill for close to a week now, so it's dried out. But I'm not a big fan of it.
If your elephant is peeling, remove it.
I also have a dinky castle tower in the sorority that had a little bubble, so I touched it and now that section is peeling. I already chipped the bottom of it using a pair of pliers to break off some sharp bits, but now that the thing is peeling, it's another reason for me to leave it at the town community shelf.
Last time I dropped off all these really low end plastic plants, and someone grabbed.
I also had a miss piggy, half a treasure chest air stone, some pink castle with really sharp residue on the inside (but broke the castle one day when I ricocheted a plastic bottle I was trying to toss in the recycling bin.)