> It's not shady – just a way of limiting liability.
It's not euphemistic – just diplomatic phrasing.
Please, this is quite literally why the policies exist. If you want to change the world, you must first accept it for what it is
In most jurisdictions there are retention policies defined in law. Companies, like almost anyone else in the world, will do the bare minimum necessary to meet the legal requirements because it doesn’t make sense to do more. They only incur expenses while exposing themselves to all kinds of liability.
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.