This is an interesting topic. Things have vastly changed from the days when parents thought it was "cute" to take naked pictures of their kids in the bath. First, one of those kids was 5 years old, that's getting a bit absurd. Second, am I going to take pictures of my kids, naked, to Wal-Mart where some 18-year-old kid could easily rip them and post them on the Web? Have some brains about the entire situation.
Calling in child services was dumb, but so was getting those pictures developed by someone at Wal-Mart. Take them to a kiosk at Walgreens or what not.