Punishment should never be a part of potty training. It's a very stressful time for children and needs ot be handled with love and compassion. Punishments of any kind only make a child feel bad themselves and their lack of progress. I agree that the course of action your daughter is pursuing is not psychologically healthy for your granddaughter. It's the equivalent of rubbing a dog's nose in its accident and it just sounds cruel.My daughter is almost 3 and we had some difficulty potty training her. What finally worked was giving her a reward every time she was successful. For every pee on the potty she got one Skittle or m&m. She had a very time getting motivated to poop on the toilet but she finally started doing it when we decided (with her) that a small lollipop was the best reward. I'm not thrilled about giving her candy, but it works. We're weaning her off the Skittles for peeing because she does a great job with that.Make sure that your granddaughter chooses all her potty supplies. Getting to choose big girl undies, a potty chair or seat, and stool all make the experience more fun, which will make it more successful.Also, some kids just take longer to potty train. I was three when it finally happend and my aunt was almost five. Kids will do it when they're ready and sometimes they aren't ready until they're older. But one thing that almost every parent and pediatrician will agree on is that punishments just don't work.