Is that a COMPLETELY plastic faucet control handle? Could you have gone any cheaper with the plumbing? Maybe plastic-wrap-coated cardboard?
I vote "normal wear and tear".
Edit: Is that the spigot, and not the handle? In that case, I would have to vote "not so sure".
Normally, the handle, you hit it and whip it upwards to turn it on, and vice-versa to turn it off. But if that's the spigot, which isn't normally manually moved? Or does it turn left/right to the two sink halves? Still, not impressed at all with all-plastic plumbing.