We used to have the same issue with our dog, and now currently, our cat. Our cat literally puts the end of the toilet paper in his mouth and runs and leaves a trail of toilet paper throughout the house, and he also eats it. But, our dog used to do the same thing, as well as go into the garbages and eat the used kleenex (eww). But we never had any issues, and I don't think it would be bad unless they ate tons and tons of toilet paper, but I think it would take a lot. I do think it was partially our fault though. We used to give our dog the empty cardboard toilet paper and paper towel rolls, and he would run around the house with it, and then destroy it into little pieces. He ABSOLUTELY loved doing that...so maybe he was just trying to get it down to the little roll, who knows.