I just can’t understand, I would think they would have to say that they purchased it and it was something other than what they thought it was.
The statute invoked appears to allow the state to make a civil claim against actors the state alleges are perpetrating fraud. The state doesn't have to be defrauded, itself.
People v. Badger Mountain Supply, Inc., at al - San Francisco Superior Court, Case No. CGC 17-557010 : note this is a 13Mb pdf file