the military often writes a spec and then refuses to buy anything that doesn't meet it. Most soldiers are not going to walmart to get supplies - even f walmart sells that type of thing.
"military grade" isn't a protected phrase. As a consumer you might be able to sue them if the thing breaks and they can't prove that phrase meant anything? But doubtful.
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.