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“In Loco Parentis” is a phrase which here means "acting in the role of a parent" and is used many times throughout A Series of Unfortunate Events, particularly in The Bad Beginning.

Mr. Poe uses this phrase when explaining to the Baudelaires that Count Olaf's behaviour towards the children isn't technically illegal, even though he abuses them by providing three children with one bed, giving them a long list of complex chores, and intimidating them.

Count Olaf also uses it as an excuse for giving the children chores and attempting to marry Violet.

Are you familiar with the Latin term 'in loco parentis?'...'In loco parentis' means 'acting in the role of a parent'. It is a legal term and it applies to Count Olaf. Now that you are in his care, the Count may raise you using any methods he sees fit.
 
— Mr. Poe, to the Baudelaires
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