Faux leather usually consists of a plastic layer attached to a fabric or polyester backing. Over time, the top layer will degrade and start peeling. This is also the case with bonded leather.
While it does contain leather, it is not an animal skin. Actually, it is leather scraps that are ground up and attached to a backing. The material is topped with a polyurethane sealant and the leather-like pattern is stamped on. This is not really faux leather, but it's also not the quality of genuine leather and the furniture will readily split and peel.