Sounds like a description of "low quality, does not work well" applies here. But that same description applies to a LOT of stuff coming out of China. I agree with calling it "low quality", but not necessarily "phony" for "fake". By your definition, just about everything sold at WalMart is phony. And don't get me started on Harbor Freight.

Did they advertise the mirror as some official mil-spec government item? No, they didn't. Here's the description from their website:

"The 5ive Star Gear Signal Mirror is made from tough .25" laminated glass with a center sighting hole to accurately direct flash in a survival situation."

I think Midway did right by allowing you to return the product. You seem to think that Midway should immediately remove the mirror from their inventory because you didn't like it. What did you expect for $10? Especially when the company name is "5ive Star Gear"? Would you also try to stop Midway from selling bulk .22LR ammo in those 500 round bricks because much better (and more expensive) match grade ammo exists?

I would not have bought one of these mirrors. All's I had to do was look at the description, the company name, and the price to come to that conclusion.