Yes it can. To make PVC more stable, lead has often been added to its composition. Lead is a potent neurotoxin that can easily migrate out of the plastic according to the Health and Environment Alliance. Holiday lights sold in California even bear a warning for users to wash their hands after handling the PVC coated wires, as they contain significant amounts of lead. PVC products can also release extremely potent carcinogens called dioxins and furans in the case of a fire.