The male-loli is called Shota. And trust me, Boku no Pico is nothing compared to the shit I've seen.Just googled the Pico thing.
Not surprised. Seen worse.
This kind of thing exists for lolis all over the place in Japan. It was only a matter of time before they jumped on the male-loli (forget the name) market as well.
Not sure why it wouldn't be legal...