If all that happened because of the security system, wouldn't it make more sense to take action against the company that made the system rather then going after 3 random citizens?

Even as a kid this episode pissed me off, pretty much was the start of my distaste for the later seasons and how much I hated the fact Squidward became a cosmic punching-bag for no discernible reason. Like Jesus Tap-Dancing Christ, after Hillenburg left the writers just completely forgot how to write good comedic suffering.