Malcolm has never considered the logic of what Chloe is saying. Take it from an android to notice that it's a bit of a contradiction.

"You're not wrong," he replies. "I don't know if you've heard of Elf On The Shelf, but some people take issue with it because they think it represents a surveillance state, that children ought to be on their best behavior only because something is watching them to report back to the powers that be."