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You should absolutely ignore it and never let your daughter know that you have detected it. There is no harm in letting her enjoy with it. Better toy than real thing.
You should of course be care full to observe whom all she meets and take special care to see that she does not spend the evenings outside home in unfamiliar company.
You should have an eye on her activities and where required give subtle warning to her of consequences such as unwanted pregnancy
and sexually transmitted diseases.
Do not try to be very strict otherwise it will have exactly the opposite action of what you intend. These things need to be handled very carefully and tacitly.