Legally, I don't think they are "lying" - in our own words, we promote CsVs as dogs. Technically, all dogs are descended from wolves. In the development of the breed, they have not used any wolves. So they can get away with it.
There are other breeders who do similar -
www.noblepawz.com
You have to really pry to determine whether or not there is recent wolf in the "breed" as the breed creator sort of uses a lot of fast talk...
The bottom line is that people are going to buy what they want, and demand is what moves the market.