A lot of inexpensive silver plated baby gifts come from the pacific rim countries. Many of these products do not have a good quality control in the silver plating process. What happens is the base metal is prepared for the silver plating process. If any oils or impurities are not properly cleaned before plating, the silver will not properly bond to the base metal. As the engraving tool passes over a bad area, the plating flakes up. To look at the cup, it is impossible for the engraver or you, to spot this defect. The responsible party is the store that bought it and the original manufacture.