Either a fake card (an old 1GB card reprogrammed to claim it's 8GB), or it's formatted with one 1GB partition and 1 7GB partition.
Buy SanDisk in a brick and mortar store - then you know what you're buying. (And if it doesn't work, SanDisk is there, with live chat on their site, and they'll take care of the problem. You pay more, but you get a lot more service. Assuming that the store doesn't replace it on the spot.)
BTW, there are listings on eBay for "factory reconditioned SanDisk cards". I contacted SanDisk - they do sell reconditioned cards [with only a 90 day warranty], but not on eBay, so those are probably fakes. (It's amazing how they can print an almost perfect card - so perfect that even with a magnifying glass, if you compare a real one and a fake, you won't find a difference.)