Do the parents believe what the sister is saying even though its from a 4 year old's perspective? I think that's the important point. Because if you explain what is going on is normal and they accept that I don't think there is a problem with the parents misunderstanding what is going on. Then like nannyde said, be firm with the 4 year old minding her own business.

But I had a sticky situation with a 3 year old recently where he went home everyday and told his parents he was getting hit by a child here even when it wasn't true. He had been hit by that child once and gotten plenty of attention from DCP for it, parents even went out and bought him his favorite monster trucks! So I eventually had to term them because the parents were believing their 3 year old and not trusting in my care.

Hopefully your family can see that preschoolers have their own interpretation of things and that is not necessarily how it's happening. And hopefully they trust your level of care.

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