I love a good controversy!
I did not know that Mofi claimed to use only first generation master tapes. Are you sure? That sounds like a bad practice. Common sense would be to use the generation that has degraded the least. Some of those 2nd generation master probably got less use over the years.
I own some Mofi. I never even considered whether they were AAA ADA, or whatever. I bought them for how they sound. If using a digital intermediary step is what got them there, then I am glad they did! I got them to listen to, not as an investment. Whatever happened to "If it sounds good, it is good."? Removing two plating steps is a far bigger improvement than any loss converting to digital and back. Their alternative was to create their own 2nd or whatever gen analog tape copy. That would be even worse and it would degrade a little every time played. Progress is hard to swallow people.
They do appear to have shot themselves in the foot with that Ultra Analog marketing stuff. I could see them getting fined for that, but good luck as the end consumer seeing any of that money. To prove damages, you would need to prove it sounds worse than if they didn't do that. Good luck with that. Forced to accept returns? Perhaps, but they likely go bankrupt first.