Canada

No, this whole story is a mix of hyperbole and not understanding AI.

Imagine there was a shitty clothing company that produced a lightweight fabric. Due to piss-poor testing and not actually giving a shit about their customers, it turns out that after a few times in the wash, the clothing essentially disintegrates as you wear it.

The story breaks, but for some reason, all the headlines all say "Company sells clothing which falls off when little kids wear them, leaving them naked!" While technically true, anyone who spends more than 5 seconds looking into it will recognize how much that headline twists the actual situation. But they print it anyways because people already hate the company and are eager to accept anything negative at face value. Plus, accusing a person or group of child exploitation is a time-honored strategy of criticism because not many people will push back against it as they don't want to be seen as defending child exploitation, even though they're really just pointing out the truth.