Military grade afaict just implies the military ‘could’ use it, by that definition almost any company sells military grade products or services, except companies who explicitly would not sell to the military.
Claiming to conform to a more specific product or process standard would be more specific fraud.
But in general though "military grade" is a red flag for shitty marketing.
Example: pop tarts are military grade! [1]
Though their commercial packaging is likely not.
https://www.dla.mil/Portals/104/Documents/TroopSupport/Subsi...