Yes, it’s false labeling. It’s not possible to process wheat in such a way as to complete remove all contamination by gluten. Even distilled liquor made with a barley or rye base affects some celiacs (who react to very small quantities of gluten in many cases), although it is said that distillation removes all gluten.

The labeling law allows them to claim gluten free if it is below 20ppm (parts per million). Technically it isn’t gluten free but legally it is. If you are very sensitive to gluten, I would avoid this product.

Gluten is the protein of wheat. Somehow they can manage to remove the protein but the rest of the wheat still remains, you dont often find this but it is possible.