False and Deceptive Advertising?

In 2009, Ralph Lauren fired supermodel Filipa Hamilton claiming that at 5'10'' and 120 lbs, she was too overweight to represent the fashion line. Yet, Lauren continued to use her severly photoshopped image (below) where her waist appears to be about 10" around and her hips are smaller than her head.  Is it false and deceptive advertising to visually portray the human body in this severly altered state without a disclaimer?

Photoshopped image of Filipa Hamilton on right: