I would certainly be calling the authorities on this. I think it's a 'good thing' that you checked. In the future, perhaps your company - as policy - 'will check all items before shrink wrapping to ensure no items are damaged before being sealed'.
I agree, we should absolutely be checking the contents of things we're wrapping for people. We're already incredibly careful about the things we ship, so we should be just as vigilant about our other services.
As far as contacting the authorities goes, I think my manager dropped the ball on that one. I sent her a detailed email about the whole thing and left said email as a printed copy with the order. I was off the next day and when I came back in she called me out for the good catch but more or less seemed to shrug it off.