This is one of the genuinely effective body products in this whole category, and it works because it is an exfoliating acid, not just a moisturizer.
Ammonium lactate does two jobs at once. It is a humectant — it pulls water into skin. And it is an alpha hydroxy acid, so it loosens the bonds between dead skin cells and lets them shed.
For keratosis pilaris — the rough "chicken skin" bumps on arms and thighs — keratolytics like this are the mainstay of treatment. Not a cure, but the thing that actually works.
And here is the fact worth knowing: at 12%, this is the same active at the same strength as Lac-Hydrin — a prescription drug. You are buying it off a shelf.
Note the name change. AmLactin renamed this from "Daily Moisturizing Lotion" to "Daily Nourish Lotion 12%." Same product.