So I did some research

and I'm happy to report the bag is fine to use!!

From what I've found out, this started out as a law for the Safe Drinking Water and Toxic Enforcement Act in California, which became known as "Proposition 65." It was originally, intended to protect drinking water sources from chemical contamination.
However, it's snowballed from that to include many, many chemicals and even everyday products, such as wood dust, brass, PVC and many, many other things.

I found it on shoes, note books, bags, tools, make up, luggage, furniture, lawnmowers, glassware, ceramic dishes and more.

One furniture company says that "A flame retardant upholstery chemical currently required by the state of California to be added to upholstered furniture foams is now included among chemicals that require a warning under Proposition 65".

So by law, they have to add it, then by law, they have to warn against it!!
How crazy is that??

The same company also said, "Because there is always a chance that wood dust or some other of the hundreds of ingredients listed in Proposition 65 could potentially be on our furniture or packing materials, we must include Proposition 65 warnings on our products or risk large fines under this law in California. In addition, we are required to use the exact wording for this warning specified by California: "This product contains chemicals known to the state of California to cause cancer or birth defects or other reproductive harm."

It seems that the risks determined by this research for these chemicals also come from the amount of exposure, for example to wood dust. Obviously this risk is going to be more so at the actual workplace.

Some companies say they would only place these warnings on their products for California, because to not have them there would result in big fines, but because they make their products and send them out in bulk for stock, they have no idea where these products will end up and so to comply with the law, they have to put them in regardless.

I have a friend who lives in California and she says it's everywhere, Shops, parking lots, hospitals and even on her car!!
I've also seen pictures of it on hand soaps and other every day products.

Anyhow, my bag has a pvc bottom, so it appears this is why it carries this warning.
I'm now at ease to use it, after reading up on everything and will be showing it off to you in my next post.

Just wanted to let you all know what I discovered and thank you all for your comments on my post.
Very much appreciated

:)