It isn't something I've ever heard before. I've not had issues with chafing myself, so I've never used the stuff, but if I did I would apply it to the crease areas where my thighs meet my body, which is ordinary skin, and not to the more sensitive areas in the centre. I agree that you wouldn't want to put cream there - but equally, that area doesn't move much against my shorts, and so wouldn't get chafed. I have had discomfort in that area, but that is caused by pressure, not chafing, and cream wouldn't help.