Seems to me like the type of "misunderstanding" that should lead to the resignation of the CEO, a U-turn, plus a renewed commitment to quality control and price cuts to reflect the fact that people were paying for a name on the headstock that is now tainted and devalued.
guitar.com/news/fender-...
Fender blasts social media for "misconceptions" about cease and desist letters, but one other major guitar brand has also been impacted.