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I used to work with an art community, which hosted a gallery for members to display their art. At one point, someone posted a nonsexual image showing two children nude. No genitals were shown, the image was a 3d rendering (so no actual kids were used in the work), etc. Basically was two naked babies playing in the woods. It didn't violate our guidelines for acceptable art, and was legal by US law at the time, so we didn't remove it. However, someone got upset, and started going around and claiming that we were selling child porn. Police did nothing because law wasn't broken, but the person raising the ruckus also started complaining to business partners and service providers. Ended up being that the Paypal account was frozen, all money in the account (which if I remember at the time, ended up being a couple grand because some money was still going in after access to the account was removed) was confiscated by Paypal. Paypal never did rule either way against the site, but unfortunately was within their right to just lock us out like that due to the ToS at the time.
I no longer work with the site due to other issues, and my opinion doesn't reflect theirs, but I personally had no problem with the image. Like I said, no kids were actually involved and it was non-sexual. I personally would have never done anything like that, but context included, why should it be an issue? People have been taking pictures of their kids taking a bath for years, yet in recent history those people are getting labeled as pedophiles and child pornographers. It seems that people are unable to separate nudity from sex anymore, especially in the US and western countries it influences.
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