Mike explains to Peter that "Invasion of Privacy" is a serious offense that people can be sued for. Well what Peter did is very minor compared to today's world. I mean guys secretly videotaping girls in bathrooms or putting cell phones under their skirts to get pictures of...what's under there. Guys have been caught doing that and I've seen them get sued big time for it in court on tv.
But I think Mike and Carol's punishment was fair because it was just a first offense and usually when it's a first offense, they let you off with a warning. Greg and Marcia went too far.