I wouldn't go that far. If it's a legal practice, it's a legal practice. I can understand why a company would want to limit their liability over something that happened seven years in the past, even when they are confident that their procedures are both rigorous and in compliance with the law.
On the whole, I would say the problem isn't so much using language to whitewash the practice as the troublesome tendency to turn a blind eye until someone becomes persona non grata.
On the whole, I would say the problem isn't so much using language to whitewash the practice as the troublesome tendency to turn a blind eye until someone becomes persona non grata.