╠ To lie, to cheat or to steal? Where is the line ╣

This is an old campaign and for those of you who don't remember it basically this video was posted, went viral and then went to such a stage that it got actual media coverage on TV. What was criticized though is that it was a complete lie, and when asked if it were true, lied some more.

From stories like this there has been a sort of established guideline that marketing and promotions should not be fake. However I believe that is too broad. I don't think the problem here is that it was fake...personally I actually think its because you can't tell the brand of the jacket and therefore have no idea what you're meant to be getting an interest in. However branching along the fake vein I believe where they went wrong is lying. The video was fake yes, however I don't think that's a big deal, it may irk some. But clearly coming out and saying it isn't fake and then doing a 180. That cost them dearly.

It's always good to get other peoples thoughts though. What do you believe? Is being fake even too far? Or do you believe I may be onto something with separating fake from lie?