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Lots of organizations use “Open” because it has positive connotations in people’s minds. They aren’t trying to suggest that they specifically follow the FOSS philosophy.
See also:
- OpenAI
- OpenTable
- Based on a cursory DDG search, dozens of other companies with open in their name, including a crypto exchange, a publicly traded tech company, etc.
It’s above your pay grade. If I were you, I’d reach out privately and suggest that the customer seek a competitor’s product that has the features that want, and tell them that there is no desire within the company to support free software or self hosting.