No, deception has nothing to do with that. The point is to disconnect the product from its brand and connect it to another (in-house) brand instead, practically negotiating away the brand/marketing portion of the price by committing to an attractive purchase-volume.

If I'm Pepsi and you want to white-label my product but then again still want to tell everyone it's Pepsi, you still make your sales on the back of my brand-investment, so you'll have to pay for the brand as well.