To the best of my knowledge - from a spirited but doomed attempt to read Google's privacy policies - Google is committed to deleting your location history after sharing it with 10,000 or so vendor partners.

Each of those vendor partners have pinky promised to comply with the rules outlined in the same privacy policy that I failed to read.

For context, I'm not convinced any living person has read the entirety of Google's privacy policies.

Sadly, I'm quite confident - by the law of averages, human nature, and corporate corruption - that not all 10,000 trusted partners also deletes our location data history.

Google does take privacy preserving steps to anonymyze what it shares.

My educated opinion is that no amount of attempted anonymozation is sufficient for the breadth, scope and quantity of data that Google collects.

Shorter answer for you: yes, I believe that is a corporate lie. True only in technicality, but likely false by any reasonable persons expectation of what "delete" means.