Cause for Concern?

I was watching The View today and saw a story about a family. Now I should preface this by saying that this is American and I don't know about the differences in American and Canadian policies but what I saw shocked me. This family is suing Walmart because they had turned over pictures that had been taken of their children in the bathtub and afterwards to the police. The couple was then investigated for child pornography. The wife was suspended for a year from her teaching job and they were put on the sex offender registry for some time. Plus, their children were taken away from them for a month. The youngest was 18 months old. Apparently Walmart has a policy that they must, by law, turn over such pictures. But surely Child Protections Services have some common sense. I have taken bathtub pictures of Abby and took them to Walmart and had no trouble. And I've seen the process of trying to remove children from their parents. But that didn't stop the stab of fear that went through my heart when I heard all of this. Oh, I know if I thought about it rationally it would all be okay, but it's hard to think rationally when you hear such an irrational story.