If the set is an LCD, yes, it is "Digital" but that only refers to the display. To receive digital off-the-air broadcasts, the set must have a digital or ATSC tuner, otherwise the set has a standard tuner that will no longer work. If the set is "digital ready" a digital satellite/cable/off-the-air converter box must be used, and fed to the set's video input(s).
Did you get fooled? Hard one to answer. It more than likely was the result of the sales person's lack of technical knowledge. "Digital" and "Digital Ready" designations have confused just about everyone since "digital" was first introduced to television.
Hope this clarifies some of the mystery, rhais.
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