When I try to use it I get the message, 'You are not sufficent level to use this item' I am level 42, so the proc must be above that.
Since you say your friend is a lvl 54 ranger who gets the out of charges message, I would say its a bug. I really doubt that VI would have an item drop in an event like this and 'nerf' it right away. We should /bug report it in game. They will probably get around to fixing it, eventually.