These tiny fuzz balls are "pills". Pilling is not necessarily considered a manufacturing defect. Normal pilling occurs when non-structural fibers work their way out of the fabric and "ball" up. (You may have also noticed this on wool and acrylic sweaters.) There are several factors that can affect the amount of pilling, including the actual fabric content and the weave. Since the pilling involves non-structural fibers, it does not effect the durability or strength of the fabric. Pilling will subside over time. With natural fibers such as cotton or wool, the fibers are shorter and you can usually just brush or pick them off. However, with synthetic materials such as acrylic, nylon and polyester, the fibers are longer and tend to "stick" in place. You can remove these using a sweater or upholstery shaver.