Where does it go from marketing to lying?
I'm not sure if it even crosses over to fraud: “Material Misrepresentation means an act of intentional hiding or fabrication of a material fact which, if known to the other party, could have terminated, or significantly altered the basis of a contract, deal, or transaction.”
What's the actual difference between a freelancer and a consultant?
If you call yourself a freelancer, you're a freelancer.
If you call yourself a consultant, you're a consultant.
You're not a freelancer by virtue of you labeling yourself as a consultant.
How is it a lie to say you're not a freelancer if you're calling yourself a consultant?
It might be a lie if you say "I've worked with them 20 times before and trust them with my life and they're all currently on my payroll" but that's not what I suggested to say.
The guidance to "present yourself as bigger than you are" isn't bad, but it's not going to take any adult long to figure out that the same guy who responds to technical questions is the same one who submits invoices and receives tax paperwork.
That sort of "fake it 'til you make it" manipulation is part of the value that these middlemen provide. The hiring company gets a disposable individual contributor and the middleman puts up with silliness like what's described here.
If someone lied to get your business then you can be confident that they'll lie to keep it.