Often, the offenders aren’t sharp enough to know what the labels actually mean or whether or not that model actually exists. For example, adding V12 badges to a V8 car, or BMW “M” badges to vehicles never even tuned by the enhancement group. Sometimes owners don’t even get the brand right, with cases of a Ford badged an Acura for example.
The USA Today reports that the carmakers acknowledge the practice, but don't seem to mind. Mercedes owners can buy the lettering indicating their cars are the high-end AMG version for about $65 at a dealer's parts department, while Chrysler 300 owners can get the Hemi-powered 300C insignia for about $12.50. Then there's the group that beleives adding a "VTech" Yo symbol automatically gives a power boost.