It's salt and water. Odds are they used zinc and nickel for plating. No toxicity worries there. EDIT: If you're not allergic. Watch for that. Some folk get some pretty serious reactions, and they can vary quite a bit between reactions.
Some of that looks like wear, though. That's definitely a manufacturing flaw/bad design/cheap product.
Keep an old toothbrush or the head of one if you use and electric, and give them a good scrub every day that you wash your car (same idea). Hopefully that's about once a week. Maybe put some sort of machine friendly oil (mineral oil, bike lube) on (wipe off the excess with a tissue).
It might get some results for better future products if you let them know about it. You may even get a new band.
Mostly, though, thanks for the heads up! I know now to do all that stuff.