that the product maker or facility has taken steps to reduce the amount of the allergen at issue in the product at hand. the labels are NOT a guarantee that the allergen has been completely removed. most products so labeled also contain a warning that the product was processed in a facility that also processes other allergens which is intended to put ppl on notice of the risk of cross contamination.

ppl who choose to eat the product or the served food item are assuming some risk that the food still has the allergen.

so even if the restaurant said the pancakes could be made and/or served dairy-free that wasn't a guarantee.