Back to the original subject; this sort of thing is actually common, and that is why there is a tort and court system. Deadpoint magazine has apparently taken sides. I would imagine that the truth is murkier than DPM makes it appear.
This subject is actually rather old, and was first beat upon here (?) and at Supertopo probably a year ago.
Based on their products, I always assumed that Mad Rock was going for the WalMart crowd, not too much (if any) innovation in their stuff - just a good price point. I'm sure Climb X will follow this model of producing crap at a cheap price.