Naturally, people were bothered:
"How would you explain that to them that Santa Claus is walking around pulling down his pants?" a mall shopper said. "How would you explain that to them? Yeah, that's disturbing."
I like that nowhere does the article specify that the "them" in the quote refers to The Children, yet it is immediately clear to whom the shopper is referring.
However, I take issue with the suggestion that the incident is difficult to explain.
"Sweetie, that man is not the real Santa."
Was that really so hard?