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.
It is something to always take into consideration and not forget.
The VPN’s ISP will have a harder time to find out which part of the traffic belongs to a specific household.