Title is misleading?

An AI-generated nude photo scandal has shut down a Pennsylvania private school. On Monday, classes were canceled after parents forced leaders to either resign or face a lawsuit potentially seeking criminal penalties and accusing the school of skipping mandatory reporting of the harmful images.

Classes are planned to resume on Tuesday, Lancaster Online reported.

So the school is still in operation.

researchers concluded that “outlawing all deepfakes is unrealistic and unfeasible”—especially since all the harmful AI-generated images that are already out there are likely to “remain online indefinitely.”

Just think a little bigger:

It must be a crime to have the harmful material.

Have it on your PC or phone —> goto jail.
Have it in your online account —> goto jail.
Be a service provider and have it on your server —> goto jail.

This will reduce the stuff.