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Retailers cannot be prosecuted for offences such as selling 18-rated DVDs or computer games to children because of a legal blunder 25 years ago, it has been revealed.
Dozens of prosecutions for alleged breaches of the 1984 Video Recordings Act have been dropped, with ministers admitting it is "no longer enforceable" in UK courts because of a technical loophole.
The problem has arisen because the then government failed to notify the European Commission about the legislation's classification and labelling requirements.
The Act also covers restricted adult movies which can be sold only in licensed sex shops.
The error by Margaret Thatcher's government was seized upon by the Liberal Democrats, who said it had left film censorship in chaos.
The party's culture spokesman Don Foster said: "The Conservatives' incompetence when they were in government has made laws designed to prevent video piracy and protect children from harmful DVDs unenforceable and has thrown film censorship into chaos.
"This must be a massive embarrassment to the Tories, especially as David Cameron was the special adviser to the home secretary in 1993 when the law was amended."
A Department for Culture, Media and Sport (DCMS) spokeswoman said retailers had agreed to observe the regulations on a voluntary basis.
Ministry of Justice figures for 2007, the latest available, show 87 people were convicted under the Act for offences including supplying material which should be sold only in sex shops and selling unclassified work.
The DCMS spokeswoman said previous convictions under the Act would stand despite the discovery of the technical flaw in the legislation.
Loophole leaves DVD law toothless
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