From an LATimes article:
When I started doing this years ago, I never even thought about liability,” Nevada says. “But Santas have a pretty good chance of getting sued. You got the obvious things: You drop a child on its head. Then there’s Santa saying the wrong thing…. I had a Santa working for me a couple years ago; he had a girl on his knee, and he commented, “You have nice eyes and nice hair.’ She claimed sexual harassment.

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