The subject of UK sex shop licensing is no longer the hot potato it once was. The country’s licensed stores tend to be firmly established in their local area and, apart from renewal time, the topic rarely gets a public airing.
It did recently though, when sex doll specialists Cloud Climax decided to move into larger premises under the control of a different local authority. Despite not being a sex shop, not having a physical storefront, and having no walk-in customers, Cloud Climax was told it would need to apply for a licence.
The postcode lottery of UK licensing – where each local authority effectively makes its own rules – means such a demand is not uncommon, and the consequences of failing to comply with it can be serious, legally and financially (the thorny subject of UK sex shop licensing is covered extensively in this book, written by ETO editor Dale Bradford).
“Given the nature of our operations at the time, this took us by surprise,” Cloud Climax explains on its blog. “We had strategically chosen not to open our warehouse to the public and had no immediate plans to operate a trade counter. These decisions were driven by our desire to streamline our distribution process and ensure maximum efficiency in order fulfilment. With this operational structure in mind, we found it challenging to reconcile with the council’s requirement for a full licence.”
In this instance, there was a happy ending though.
“Our commitment to transparency and ethical business operations compelled us to engage proactively with the council,” Cloud Climax continues. “This entailed attending several licensing committee meetings where we presented our case, outlining the specifics of our operations and our rationale for contesting the need for a full licence. During this period, it became clear that both parties sought the same outcome: ensuring the best interests of the public and upholding the integrity of the adult entertainment industry. To navigate the legal intricacies, we sought expert legal counsel, while the council undertook its own legal consultations. Our collective goal was to find a solution that was both legally sound and operationally practical.
“The outcome was a collaborative decision. We would formally apply for a licence but simultaneously submit a counter proposal requesting an exemption, given our current warehouse-centric business model. This solution demonstrated our commitment to compliance while also acknowledging the specific nature of our operations.
“After diligent review and deliberation, we were thrilled to receive a six-year licence exemption… While this exemption stipulates that we cannot operate a trade counter or host the public at our current location, it doesn’t preclude us from adapting our business model in the future. Should we decide to introduce a showroom or any other public-facing component to our business, we are prepared to reapply for a full licence and meet the associated annual licensing fees, which, as many businesses in our sector know, can vary significantly depending on the region, from £1,000 to £15,000 per year.
“Our licensing journey underscores the importance of open dialogue, adaptability, and a genuine commitment to adhering to regional regulations. We remain grateful to our local council for their collaborative approach and to our loyal customers for their patience and understanding during this period. We look forward to serving you with continued dedication and integrity, as we have in the last 10 years of trading.”
The full story can be read on the Cloud Climax blog here
