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There is a small leather tag hanging on the strap of a leather bag with the brand written on it. Should it be removed when carrying a backpack?

If it is single-layer leather and the reverse side is rough, it is just for the merchant to tell you about the leather of the bag and should be removed. If the decoration is made of leather and has a logo printed on it, there is no need to remove it. For example, COBO, this brand's bags have leather decorative logos, which are just used as decoration and do not need to be removed.