Was this guy doing the right thing, calling police on 13-year olds selling cupcakes?

I've worked at farmers markets, which is in a sense the same thing (selling food on the street) and yes, food safety is something that is taken seriously all over the country, as it should be. Calling the police was probably overkill, but these laws and rules regarding food vendors exist for a reason. Had somebody gotten sick over these cupcakes from food poisoning, then the kids would have been liable in civil court (hence the reason for the insurance requirements) and without insurance would have had their financial futures/credit ratings destroyed.