This is due to Costco, Wal-Mart, Target, and other similar stores that are not bike shops not giving a damn or knowing what to do. People there are paid by the bike so quality and safety are at the absolute bottom of the list. So long as it looks enough like a bike and they can get it on the floor fast that is all that matters. In some cases they are also building grills and patio furniture and other stuff. The bikes also never see a mechanic before they leave and may not see one after which can lead to a very dangerous situation.

It is a shame there is always a constant race to the bottom instead of paying people hourly and teaching them how to do it correctly just let them do whatever and try to pay them as little as possible. Not that a Wally-mart special is going to be a particularly safe bike regardless but at least with a properly trained mechanic with at least some decent enough tools that isn't time crunched and can build properly will put out a potentially better bike shaped object that is less likely to have or cause issues.