I don't have a problem with that statement. At least they are being honest. It isn't possible to buy health and beauty products that aren't in some way tested on animals, whether it's the finished product or the components.
An excerpt from Clinical Laboratory Animal Medicine by Karen Hrapkiewicz: "The Food, Drug, and Cosmetic Act mandates that prescription drugs be tested first in preclinical animal studies and then in clinical human trials prior to marketing to the general public to ensure they are safe and effective products. Companies that sell beauty and cosmetic products to a largely uneducated group of consumers often misuse the term cruelty-free as a marketing tool. These companies claim that they conduct no animal testing. The reality is that their products are either tested by an outside laboratory or are made of compounds known to be safe through previous animal testing."
I am completely against animal testing, but you do the best you can. Until the laws change, there will be products that you just can't buy without them having been tested on animals in some way, shape or form.