The frankenflash project has been warning people about counterfeit and/or fake flash memory sold on ebay for a long time. Selling counterfeit, fake and faulty items on the Internet is much easier than selling them on a market or in a shop. Buyers only have a picture and a description to go on.
We think this article on the CBC News website makes it fairly clear how widespread fraud on the internet is:
http://www.cbc.ca/money/story/2009/12/03/counterfeiting-online-selling.html
The fact is that when buying flash memory items the rule is TRUST NO-ONE! Even reputable high street stores, computer magazines and respected internet sellers have found themselves supplying customers with fake or faulty flash items.
Anyone who buys flash memory items (memory cards, MP players, USB flash drives etc) is advised to test with the free program h2testw.
Flashchiptutor's Flash Drive Facts 