So you're all for falsely stating that something is in the product if it's not, as long as the company thinks it's sorta the same thing? Or do you mean like generic drugs say "compare to the active ingredient in Tylenol(tm)"? I'm all for the latter, the former is just fraudulent.
See my sibling comment. Lying is a problem with drugs—that we solved by creating the FDA—because drugs contain things that can hurt people when people take them who shouldn't be taking them. We classify everything with such ingredients—"active" ingredients—as a drug. Nothing that's not a drug is allowed to have any "active" ingredients; only "generally recognized as safe" ingredients.
It would be a public health problem to lie and say that something is acetaminophen when it isn't, and would also be a problem to lie and say that something isn't acetaminophen when it really is. Both would hurt people.
Lying about whether something contains the chemical compound "aloe vera" hurts (in the literal health sense of "hurts") no single human being. Therefore, it's not illegal.
It might be bad behaviour, but so is 90% of advertising. It's not particularly worse than e.g. orange juice that says it's "made from real oranges" when it's really made from a mixture of extracts distilled from oranges.
Again, as I said in my sibling comment: the only real "simple" thing that would make this better is to disallow the non-FDA-regulated product classes (things other than "food" and "drugs") from making ingredients claims at all, since nobody's checking them anyway. That'd interact in really strange ways with product names that are simply ingredient descriptions—as in this case—but using phrasing as in your example would probably give them an out.
