Yes it is deceiving and it is basically lying. Those dogs that are dyed apparently do not fit the yorkie standard they profess to uphold so much. Its a shame all the double standards they preach. Its ok for them to show a dyed dog in the ring, but disqualify others that they say "quote" is out of standard.
Heres the video I watched and I thought it was pretty bad to use that much color on a dog for show. Shame on them.