[sneak]

You would expect it because it has "private" in the name and because words mean things.

The "you should have known they were lying because $5 is obviously too cheap to provide the service they are claiming" argument doesn't hold water.

[webnanners]

"Private Network" is often analogous with "Internal Network". They aren't lying,it's private as in it's using private IP assignment within their own infrastructure. Thus, private.

http://en.wikipedia.org/wiki/Private_network

This is purely a case of not knowing industry terminology.