dealt with TSOs in the food industry over the years and usually they are quite reasonable/sensible people. From my legislative knowledge i feel that you may have had an arguement that could be the loophole in any legislation around sale of goods act etc in that it is not being offered as a retail sale, eg by a registered company , but as a private sale, as you the seller. and it is at the discretion of a buyer to purchase that 'record' from you at an agreed price between the two parties.
personally i think that as an under-manned and 'over-stretched' organisation with local government that they woiuld have better things to do (unless of course their main mission and reason for being there is to catch any bootleggers at work selling copies en masse?)