It's called fret sprout and it's caused by low humidity where the guitar was stored - sometimes when the weather gets dry the neck wood shrinks slightly which results in the fret ends sticking out. It's not really a defect, and you often hear about it happening to guitars with unfinished or oil/wax finished necks (like EVH/Peavey Wolfgangs, EBMM guitars, etc.).

Try increasing the humidity in the guitar case by using one of those soundhole humidifiers you can get for an accoustic to see if the neck expands back out. If that doesn't work (or you don't have enough "return time" with your dealer) you have two options - send it back to the online dealer for replacement or have it serviced under warranty (have them file the fret ends).

Contact the company you purchased it from. Maybe it slipped by Quality Control at the factory. Also, you may want to check the serial number with Fender Consumer Relations(480-596-9690). Call the number and give them the serial#. See if it all checks out....neck date, body color, guitar type, all that. It could be that someone switched the neck on it. Are you sure you bought it from a reputable buisiness. Send it back and request another guitar if it's that bad. Only some suggestions. Hope it helps you out.

Edit....... What John C. said is probably right. I've never heard of that but I'm glad to learn of it. You can disregaurd what I said. I'm still learning.

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"Damn Right I Got the Blues"

I don't know where the OP lives but I suspect the guitar was fine when it left California. It's been pretty cold and dry around here for the last month or so (regardless of the twice-weekly 1-3" snowfalls our part of Kentucky has been getting). We have this one store that is a warehouse-like setting (concrete floors, high unfinished ceiling, very cold and dry in the store) that has quite a few guitars with fret sprout because the humidity is too low - specifically 5 $3K EVH Wolfgangs as well as several Fenders in all price ranges. Come March/April when the humidity rises they will be better. Granted, a really dried-out piece of wood shouldn't shrink that much, but the kiln-dried wood most companies are using aren't as dried out as wood was decades ago.

It all makes sense to me. Thanks for posting. I'm always looking to learn more about guitars.

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"Damn Right I Got the Blues"

The GC here in pgh has this issue on most guitars I have tried there.

I just realized how much pink letters hurt my eyes.

Anyway, the temperature and humidity is one major factor.

Thanks for the information.