This is a way that some businesses try to convince people their product has added value.
Some people will do ok with hydrolyzed products, others won't. Some will say its gluten-free, others will say it isn't. Since there isn't a gluten-free standard in the US for food or drugs - they can say whatever they want.
I wouldn't use it, but that's me.
Thanks, that is exactly what I needed to know!