Just my 2 cents, but I don't think that the company was intentionally trying to mislead their customers. They probably just never looked closely at those pictures that Moda provides. My store carried some of that line, and looking at that composite picture, I can tell you that the fabrics are all out-of-scale with respect to each other. That kind of picture is good for showing you the colors in the line, and roughly what the prints are but... that's about it. Moda apparently makes this type of picture by taking all their square individual fabric photos and progressively shrinking and overlapping them.
This company did make available the "view larger" photos, which are true-to-scale representations of the line. Those pictures are exactly what are in Moda's official printed catalog, if you are lucky enough to be able to get to look at one.
Every manufacturer makes pictures of their lines available, and most online shops just use those photos, as is.
A wise shop, though, will at least look at each fabric as it comes in, and "tweak" (or replace) the photos to make sure that they accurately depict the fabric.