Yeah, gotta watch out for those counterfeits. I got a bunch of new in wrap FAL mags, Austrian, at a gunshow. I bought them all up, several of them, without inspecting since I also bought a few that were not in the wrap. When I got 'em home, I noticed the finish looked a little off, but otherwise they looked fine. When I tried them in the rifle, they wouldn't fit without jamming them in there.
I took them back and demanded a refund. The guy didn't give me any flack because I think he understood he would get no more business until I was satisfied, I wasn't going away. He showed me how they fit fine in his rifle (he had to jam them in but not as hard as I did). We ended up trading out for the used Austrians and a little cash back, I was happy, but I left not being able to convince him those mags were made in Korea.
Fast foward several months and I see the same guy at the gunshow selling the same mags and having the same conversation with another guy, but this guy lost and walked away stuck with the junk. At this point, I am pretty sure he knows they are counterfeit but he's making a killing on them.
Now for the EoTech. I have one I got in '06 or '07, it has been on an M4 mostly but was used on a Beowulf, shotgun, and an FAL at some point. If that sight is on high, you can't see the target, the inverse problem. It is too bright. Quality reflex sights have very high bright settings for just these problems, I rarely go past half brightness. You don't have it on NV settings do you? Could it be stuck on that? Internal problems might be under warranty, or at least fixable for cheap, who knows.
If you are going to full bright and it isn't doing anything, check to make sure the laser in it isn't dirty or oily. Outside of that, there isn't much you can do.
If you are positive it isn't counterfeit, you could very well have a bad component inside. Call them and tell them your problem, if it is a bad component they may fix it. I find that if you just call and ask nicely and commend their products, that most companies will fix or replace stuff for free. Things you would expect, like smashed KAC handguards, ran over Dillon earmuffs, dropped a tritium compass into a fire, etc. None even charged me for the shipping!
If it is counterfeit, that needs to be reported to the police. I'd let the gunshop owner know once you are sure it is counterfeit, and give him the opportunity to rectify the matter in your favor or else you'll post it on here, on youtube, on local arms forums, etc. Tell him folks that sell counterfeit goods at real prices don't do too well on the open market. Also report with ripoff.com and BBB. If you do all of this and let him know you mean it, chances are he'll take the hit. Just make sure you impress upon him how the internet will forever link him to counterfeit products (and indeed, if you start enough articles on it when people search for his store they'll get your stuff instead).
Him telling you to blow off is classic counterfeit style, but he'll play dumb if he gets called out in front of others, and that is when you back him in the corner and get your money back. As long as he can play dumb and save face and not be trashed on the internet, giving you your money back may be the best thing. Tell him he can always sell it to another sucker that won't be such pain as you (worked for me).
Finally, you could have a Bushnell, they aren't counterfeit but they aren't mil grade EoTech's either. They look like the same thing I think but without the metal guard. I've never used one, but they look almost identical. Not sure how bright those are.
EoTech is one of the best reflex sights out there. It took them a while to win me over, I like the Trijicon reflex, but the EoTech is much more accurate than the Trijicon on an ARMS mount. Faster too. Only thing I don't like is batteries and buttons, but I've learned to live with it due to what that sight is capable of. I truly don't believe there is a faster sight for a carbine.
You need to get to the bottom of it and not get taken. If that store is willing to leave you holding the bag, there are a lof of things you can do to cut into business that will make them do anything to get you to go away. I'd demand a NIB EoTech to go away once I got fired up.