A five-year-old girl was fined £150 by Tower Hamlets for selling 50p cups of lemonade to Lovebox festival goers.
Father Andre Spicer said his daughter had set up the stall in Mile End, east London, to provide drinks for the thousands of music fans streaming along the road.
He told the BBC his daughter burst into tears and told him “I’ve done a bad thing” after four enforcement officers began reprimanding her.
Tower Hamlets Council has since cancelled the fine and apologised.
Mr Spicer said: “She just wanted to put a smile on people’s faces. She was really proud of herself.
“But after a small time trading, four enforcement officers walked over from the other side of the road.
“I was quite shocked. I thought that they would just tell us to pack up and go home.
“But they turned on their mobile camera and began reading from a big script explaining that she did not have a trading licence.
“My daughter clung to me screaming ‘Daddy, Daddy, I’ve done a bad thing.’ She’s five.
“We were then issued a fine of £150. We packed up and walked home.”
He said in an article for The Telegraph he offered to buy his daughter a permit so she could run the stall another day but she replied:
"No. It’s too scary."
Mr Spider added: "Everything children do today is carefully regulated by officials, inspectors and their own parents. There are good intentions behind all this obsessive monitoring. But these good intentions can quickly sour."
A temporary or permanent street licence is needed to operate a market stall in Tower Hamlets
Applicants must be over 17 years of age and the fee is £75.
Support has poured in for the family with people on Twitter praising the girl’s entrepreneurship and offering to let her sell lemonade on their premises.
Jane Smith tweeted: “So horrible. I would like to buy a lemonade from her, and I praise her entrepreneurship. Send her my regards, please.”
Richard Lander said: “She’s cordially invited to set up at @citywire HQ in Vauxhall any time she wants.”
Paula Wray said: “I look forward to her becoming Business Woman of the Year one day- tell her it will happen.”
A council spokesman said: “We are very sorry that this has happened. We expect our enforcement officers to show common sense and to use their powers sensibly.
“This clearly did not happen.
“The fine will be cancelled immediately and we have contacted Mr Spicer and his daughter to apologise.”
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