Well...lol...it doesn't sound great, but sounds are a funny thing. Our ears are imperfect organs and don't always interpret things correctly. I can kinda understand why the mother is upset, but the solution is to explain to the kid that is toy is broken and it needs to be replaced. Yes, he may cry for a few seconds, but he will move on. I know this from my own childhood experiences, lol.
Yeah the company might as well replace it, it probably just got broken.
It's not that big a deal. Though, I personally never really wanted to buy my kid an Elmo doll. Or at least, not JUST an Elmo doll. I'd rather he/she had a variety.
Oh! You know what this reminds me of? The other day at a Toys R Us I saw these bouncing ball things that were made to look like Bert and Ernie's heads. When you pushed them they talked. I pushed the Ernie one, but Bert's voice came out! Even more shocking, when I pushed the Bert next to him, Ernie's voice came out!