Their case is unfortunately not unique (here and here). However, they are doing something about it by suing Walmart.
The couple had simply sent 144 pictures from their vacation to Walmart in Peoria when a developer at the store noticed some naked pictures of the girls in the bathtub — a common picture for parents to preserve memories (and later torture their adult children).
The police continued to persecute this family despite medical evaluations that showed no signs of sexual abuse and an obvious explanation from the parents. A Maricopa County Superior Court judge ultimately ruled that the photographs were not, in fact, pornographic.
In 2009, the couple sued Walmart for failing to tell them that they had an “unsuitable print policy” and could turn over photos to law enforcement without the customer’s knowledge. However, a federal judge ruled for Walmart on the grounds that the employee was reporting what she believed as a crime of child pornography. The Demarees appealed to the 9th Circuit Court of Appeals, which just heard their appeal on March 6th. Walmart is arguing immunity again for reporting a crime. The couple has also sued the city of Peoria and the State Attorney General’s office for defamation.
Source: ABC