Tagged. Professional (QC) curiosity. Any process or procedure can fail. It's how the issues are handled that defines the manufacturer.
Yes, agreed. The process should have been caught at the factory and the machining process adjusted/reviewed. At that point all of the regulators from that run should have been pulled and inspected. Obviously not. This means that there must not be a testing procedure for each regulator before it leaves the factor. The next response should have been from the US when the regulators where received and inspected. It is hard to believe that this can get into the hands of the consumer after the complete failure to QC by both the manufacturer and the retailer.
More important than a public apology and free stuff should be a hard look at making sure that this never happens again. Consumer confidence is shot to hell in a hand basket when things like this happen. If something simple, basic and easy to see visually are happening, what other tolerances are not being checked?