The phrase in the title is a common trope that comes up when VPN services are discussed. While this statement is technically correct, it can be misleading, as it implies that all providers handle law enforcement requests and prepare for worst case scenarios similarly, so their conduct cannot be a differentiating factor when you evaluate them.
I know how VPNs work. When I connect to a VPN I trust that the provider doesn’t snoop on me, actually routes the traffic like they promise and combines my traffic effectively enough that it obfuscates my identity.