I read about this the other day on the bbc. Utterly ridiculous. Apparently though their bosses made a statement that what they did was wrong, that they were expected to apply some common sense to the rules of street trading (i.e. leave a 5 year old with an innocent lemonade stand alone), but they didn't.

The child did get an apology in the end, but i think you are right, the poor girl is probably scarred by this incident.