We don't have enough information here
Without knowing what models were supposed to be recycled and what condition they were in we can't be sure whether criticism is warranted.
If they were something really old that's no longer supported by software updates and many apps, people would have been buying something they'd have trouble using.
If they had some issues like non working cellular or wifi, I'm sure the guys who were reselling them would be happy to take some sucker's money and claim "they were sold without warranty, sorry!" if the buyer complained. If they were sold as "Apple refurbished" when they weren't, then it is Apple who looks bad, not the reseller.