No, not a child doing that

I do not think that was ok. Yes, a young puppy is carride by the mother like that, and sometimes a trained professional will do that. Hoever, a child is a different story all together. I'd talk to the parent about it, and let her know that it was not ok for her daughter to handle your puppy in this matter. The thing is the child may have seen an adult do that! Communicate to the parent and you set the rules.