Actually, that's true. Many years ago, my wife had never had sex with a condom, so we did it with one of the ones she got from Planned Parenthood. Thing broke in seconds.
I do NOT recommend "charity condoms". She hates them anyway, but for those who do use condoms, definitely don't go cheap. Their intentions are noble, but that's a lot to risk to save four dollars.
I've heard lots of similar mishap stories, so I'm guessing that the clinics get the ones that come off the line "irregular"; like discount store name-brand jeans with sub-standard stitching. Same deal, I wager.