So, should they be requested to do so by a formally issued court order, they would comply and start logging a user’s activity, but do not do so by default.
Calling them worthless at providing secure browsing seems far-fetched; calling them a scam is fully disingenuous.
*Tunneling* it through one hides the nature of that traffic from intermediary systems that it traverses from you up to that VPN exit point.
There is a lot of metadata in packets that can be viewed by any interim hop, like your ISP, workplace IT security, ARP-cache-poisoned coffeeshop router, etc.
Calling them worthless at providing secure browsing seems far-fetched; calling them a scam is fully disingenuous.