That's only if the police are aware of what geocaching is. I know a lot of police officers (through work) that don't have a clue what geocaching is. Unfortunately we live in a semi paranoid society where too many folks jump to conclusions and watch way too much CSI on TV. I think it's incumbent on the associations to make time to go to their local police and educate them. Perhaps a learning session. If we don't I think this kind of thing seriously jeopardizes the future of geocaching.
If you think this is bad check out some of the geocaches in Afganistan. I wonder how they can do geocaching there where everyone is super paranoid.