That is a liability issue for the reason they said that. I was a manufacturer but gave up my class 7 and just went back to a class 01 FFL and only do custom gunsmithing now because of liability. I don't know how anybody can afford the insurance for that anymore. It won't be too much longer before American gun manufacturers are sued out of existence over stupid stuff.
I had a customer last year who asked me to shorten his barrel and against my better judgment I did and that started a manure storm like you wouldn't believe. It was a legal length too.
What happened was on one gun forum he was singing words of praise about all the work I did on his rifle and on another one he got together with the owner of the forum who I had refused to do free work for. He was wanting thousands of dollars of free work and threatened me if I wouldn't do it. That's called extortion in most states. On that forum he was saying I was a hack and that I riped him off. They were telling everyone they could their lies and encouraging everyone to report me to the law and sue me. Noone did but I sure had a lot of talks with the law trying to shut them down. There were other false claims and bald faced lies too (all of it was lies) but you wouldn't believe the number of people that actually believed it and were threatening to sue me. They were all just jumping on a bandwagon and blowing smoke trying to get something for free.
This business is bad enough without having to worry about criminals trashing my reputation. I gave up manufacturing real fast after that. Even a small part of the pro gun crowd is off their rocker so who needs it.
I'm not the only one it's happened to either.
If you think that's bad, try manufacturing a gun and selling it in california. No 1911 type pistol can pass their new safety tests. I think they have to drop it from a height of more than 30 feet and see if it accidentally fires. Among other stupid tests. I refused to submit several of mine for testing so I couldn't sell any in Ca. I can make a really nice custom 1911 model too.
Now there is only one in existence and it's the one that stays on my belt here in the free state of Texas! Here is probably the only picture of mine anywhere:
Notice the position of my hammer. Condition 1 is the only way I carry it. What good does it do if I have to waste time loading it when someone breaks in and is trying to steal the ones I work on here. I doubt they would come unarmed or lightly armed considering I work on military weapons only here. I am always ready just in case. I have to be. That said, every 1911 manufacturer out there says not to carry one with a round in the chamber for liability reasons. SInce I built this gun and can only blame myself if it developed a mind of it's own and went off I can carry it like that. I don't have to worry about it causing cancer to someone in California or anything. It will never go to California.
I duracoated it to that desert color at first because that's what everyone seemed to want at the time. Since I'm not trying to sell them anymore I parkerized it like it is supposed to be and am leaving it black now.
It's just not worth the liability selling guns that you actually make when there are so many idiots in the world with no sense of personal responsibility!
I don't know what started it but it seems very few people can take responsibility for their own actions anymore. With the rifles I restore now I have to tell people don't handload for them because of what a couple of boneheads have done in the past. Overcharging the cases, using the wrong powders, wrong bullet weights and all kinds of dangerous stuff. I handload for all of mine but I do it correctly and safely. Still accidents can and do happen all the time. I sure don't need it blamed on me when someone uses IMR4350 in their reloads even when I tell them it is too slow and unsafe in this particular action.
Anyway, FWIW, I think the pistols they make are fine. They definitely are better than some others on the market. Colt and Taurus make good ones too.
I will not be doing this much longer for the general public. I may not even keep the military contracts. I haven't made up my mind yet. My point is though, what used to be my passion now has my family living in fear of bogus lawsuits and the constant fear of being robbed. I'm not that old but I sure feel like I am.