This is how they can make that claim, copied from texassynthetics.com
CASTROL AND MOBIL GO TO COURT TO BATTLE IT OUT:
Recently, Mobil accused Castrol of reformulating its synthetic by substituting other basestocks in place of its synthetic polyaphaolefins (PAO's). Castrol Syntec is a hydrocracked oil. That's right, Castrol has replaced the PAO synthetic base stock with hydroisomerized petroleum base stock. Hydrocracking, as it's called, is the highest level of petroleum refining. Castrol isn't even a synthetic yet Castrol ended up winning the battle when the National Advertising Division of the Council of Better Business Bureaus ruled that Castrol could still market its oil as "synthetic" despite their new formulation. Basically, they expanded the definition of synthetics to include Group III hydroprocessed petroleum oil. This high profile case took place because synthetics are recognized as the market's best hope for growth. Synthetic oil sales have outpaced petroleum oil sales by a wide margin and the gap continues to widen every year. Consumers are getting smarter and demand the best for their vehicles. Read the full story on the Castrol issue in our informative articles section. Additionally, just as soon as Castrol won this battle, several other major oil companies jumped in and came up with hydroprocessed motor oils of their own and labeled these products to be "100% synthetic", when they still are Group III hydroprocessed petroleum oils.