Legal Issue About a Private Network

Hi there,

I work in a local bar who owns a private wireless network. They give free access to guests and charge £1 for the wireless network password for non residents, which I always thought sounded okay.

Anyway, this guy came into the bar the other day and asked if there was a wireless network available, and I told him it was a pound for non residents. He then said that it was illegal to charge money for a wi-fi code. He pulled out a business card for a wi-fi hotspot company, pointed at it and acted really self important and smarmy, even though to be honest I was just passing on what I'd been told. I called the boss and he came down and made some excuse and the guy left. Anyhow, my question is - is it actually illegal for a hotel to charge people for the use of it's private network? Or is this guy just trying to scare people out of doing it because he has a wi-fi business and is bitter other people are doing something similar? Like is there a clause with your ISP contract saying that you can't make money off sharing your private network or something? Or some sort of licensing you need to do so?

Anyway, thanks very much!