I would have to say that any company in the world can pretty much state whatever it is that they want regarding logging/not logging. Unfortunately if it ends up being a lie, they can be sued by people directly suffering damages (in this case probably when the kiddie porn person is out of jail - I am assuming he will go up against a lot of judges and may have to go to the supreme court which would likely end up siding with him - lucky for us, he's probably not that passionate about fighting his cause). And secondly the FTC could sue the company just the same for not being truthful in the advertising. But it sounds like IPVanish had previous owners, so who knows how that will go.