From CarCareOnline.com:
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Literally a plasticene/abrasive mixture used to smooth new paint and remove over spray. This type of product must be used with lots of lubricant. The technique of using a clay is a learned skill. Use too little lubricant, or get contaminants in the clay, and you have moved into scratch city. This is one product that is the fast lane to trouble if not used with extreme care. I do not recommend this product as a general paint cleaner. You literally grind off a layer of paint. Should be used as was intended, to remove paint over spray.
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Does this still apply, or have clay bars changed in some way? It seems people here even clay new cars.