This paper concerns higher and further education institutions' policies as they relate to the interactions of their staff and students with the sex industry. In Scotland and England, consenting adults may legally buy and sell sex and commercial sexual entertainment, such as erotic dance and phone sex, provided that they do not do so in a public place. The indoor commercial sex sector is legally staffed and patronised by a wide variety of individuals, yet newspapers publish articles for salacious appeal exposing their involvement. A Freedom of Information enquiry found that although no institution had a policy prohibiting staff or student involvement in commercial sex, unwritten assumptions could be used to penalise legal but stigmatised sexual behaviour. The paper considers how institutions might respond to allegations of disreputable behaviour.