"When on a mission to rescue the princess, Mario has been known to use any means necessary to defeat his enemy — even wearing the skin of a raccoon dog to give him special powers. Tanooki may be just a “suit” in Mario games, but in real life, tanuki are raccoon dogs who are skinned alive for their fur. By wearing Tanooki, Mario is sending the message that it’s OK to wear fur."
In the game Super Mario 3D Land Mario has the power of the tanooki suit. I don't think PETA will go anywhere with this because this is game which is based on an American-Italian Plumber who is trying to save his damsel in distress, Mario games are also rated to be playable by children. I’m also sure Nintendo would be smart enough to think if this game is giving out the wrong messages or not, even though I doubt it’s giving out any wrong messages.