Honest question: taking customers' billing information with the promise of a product at a later date without they actually knowing that you don't even having t

Honest question: taking customers' billing information with the promise of a product at a later date without they actually knowing that you don't even having the product. (more importantly when customers' are made to think the product exists: http://publicbeta.co/library/ http://publicbeta.co/library/) Is it even legal?