How serious should we take a warning label on something from China?

We just purchased a pet bed for our 5 pound chihuahua from ebay. When we got the product and opened it up, there was a tag attached to the bed cushion. It reads WARNING This product contains lead and/or cadmium chemicals known to the state of california to cause cancer and birth defects or other reproductive harm. Obviously this warning was not mentioned in the ebay ad, and we do not know if the seller even knew the tag is there. We have contacted them and are waiting for a response, but how serious is the warning??? I've read online that california considers everything dangerous these days...