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Magic erasers, are made of the same stuff that sound proof insulation is made of, a corse foam.
This rumor also shows up on a lot of urban legend sites, there is no proof of it, other then a hoax chain mail which started back in 2002. Magic eraser lists no soaps, solvents or chemicals. It literaly is the ruff texture that removes stuff. If a child scrubs their arm with it, they could get a abrasion, but not a chemical burn.
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