First, why isn`t a picture of a naked seven-year-old child considered child pornography and why doesn`t ASACP report this to the F.B.I.?
Under the current Child Pornography Laws nudity does not always equal child pornography. If a child is nude, partially nude or fully clothed is not the determining factor; what the child is doing and/or having done to him/her is. If the image is lewd, sexual in nature or the picture focuses on the genitals, then chances are - it is child pornography.
A "loophole" exists to protect everyday people who may want to take an innocent picture of their child in the bath tub and share it with family and friends through email or on the family website. It also exists to protect legitimate artists, such as David Hamilton, who is a world-renowned photographer specializing in artistic child nude photographs. Unfortunately, a growing number of sites exploit this loophole. These sites are "artistic" in nature, contain the necessary legal disclaimers (18 U.S.C. Section 2256 compliance notice), and warnings for child predators to "stay out". In reality, everyone knows that the people purchasing memberships to these sites are not art lovers.
If ASACP thinks there is any question as to the legal status of a site, they report it to the FBI. Rest assured that the authorities are aware of many of these sites and do prosecute if they conclude the content crosses that very thin line.
http://www.asacp.org/press/press0203a.html