This kind of line-extension fraud is pretty common. Pyrex used to be a brand name for borosilicate glass, the kind you can safely heat to red heat on a Bunsen burner, and became popular for home baking dishes as well. At some point Corning started selling tempered soda-lime glass in the US as "Pyrex" as well, which can explode if subjected to thermal shock, a decision that causes several cooks per year to end up covered in turkey grease and glass shards. Saran was Dow's trademark for polyvinylidene chloride, a superior chemical protective layer, which became popular as a plastic wrap as a way to preserve food against evaporation and rancidification through oxygen ingress; now Dow sells Saran Wrap that contains no Saran, instead consisting of polyethylene, which permits literally a thousand times as much oxygen through. Similarly there are lines of Sudafed that contain no pseudoephedrine, Kaopectate that no longer contains kaolin or pectin (only in the US), and so on.
In electronics, substituting inferior components after the initial launch of a product has become routine, and it isn't even always intentional fraud; the manufacturer may honestly believe the new, cheaper parts are equivalent to the original parts.
I think you will see organized crime prosecutions against executives for this behavior, but only in PRC.