I used their language after reading terms on their site. They mention "establishing a connection" and outline terms their "protected" terms and logos. It may as well be an overreach but it seems they're an effective bully and the choices would be to either stop mentioning Olympics in ads or fight over interpretations of the various protections in court. I think most targeted vendors that would take on them would probably go bankrupt pretty fast.

Either way, I don't really know if they should be able to quash unauthorized ads but I do know they're going about it like assholes.