I think that was a stupid punishment.

All kids have the capacity to do wrong, no matter how well the parents raise them. That's childhood; you're growing, testing your boundaries, learning right from wrong, paying the consequences for your mistakes. Hitting the parents over the head w/ an exorbitant monetary fine for the kid's lapse in judgment not only does nothing to impress upon the kid the wrongness of his/her actions, it is hurting the entire family, including the younger kids, older siblings who may be in college, the grandparents who may live w/ them, etc.

Personally, I think a public shaming punishment really befits this type of transgression, as well as loss of privileges. A public apology would be nice, too.