This is simply inexcusable. With the portrayal of the toy on the box and the fact that it is called "Masterpiece", we are being far too forgiving. I had toyed with the idea of getting one but now I am most certainly not.
If you were looking for one of these second hand and they had those defects, you would expect to pay far less than new price, yet Target (and comrades) are clearly screwing their customers here.
This has Fair Trading written all over it in my opinion.