More general:
* Deceive
* Misrepresent
* Mislead
* Disinform
* Distort
* Exaggerate
* Understate
* Falsely advertise
* Give a false impression
More specific:
* Hype (when something is advertised as better than it actually is)
* Undersell (when something is advertised as less good than it actually is)
* Downplay (when something is advertised as less important than it actually is)
* Overpromise (when something is advertised as having more features or benefits than it actually has)
More formal:
* Miscommunicate
* Make a false statement
* Engage in deceptive marketing
The best word to use will depend on the specific context and the intended meaning.