Peaches Geldof was stopped at a London clothes shop yesterday on suspicion of shoplifting.
The 17-year-old daughter of Bob Geldof was questioned by security guards as she began walking out of Urban Outfitters on Oxford Street wearing a bulky coat which still had a security tag on.
Alarms at the fashion emporium sounded and Miss Geldof was asked to come inside for questioning.
Sources at the shop claim Miss Geldof had tried to leave without paying for the coat, and was eventually allowed to go after coming to an arrangement over payment.
Miss Geldof disputed that version of events last night, and was adamant she had in fact paid for the coat, and that cashiers had simply forgotten to remove the alarm tag.
Security guards at the shop questioned her for an hour and a half before she eventually left. Police were not called.
By the time she left at 4.30pm, a hoard of paparazzi photographers had gathered outside to snap her leaving in a silver chauffeur-driven Mercedes limousine which had been summoned to collect her from the rear of the shop to avoid embarrassment.
A source at the store said security guards thought Peaches might not have paid for the coat and was walking out wearing it anyway.
"We could not find a record of her having paid for it and she did not appear to have a receipt. We checked her bags as well,"
"In the end, news had got out and photographers were starting to gather outside.
"We came to an agreement and she left through the back door at the store after about an hour and a half."
Miss Geldof left the shop with her head bowed, carrying what appeared to be a number of bags bearing the shop's logo.
Asked what had happened, she remained silent, though her companion replied: "We've been shopping - what does it look like?"
When questioned last night at her south London home, Peaches disputed the shop source's version of events.
She appeared adamant that the store's security was to blame - saying she had paid for the coat and that the security tag had mistakenly been left attached to it.
"I paid for it obviously but they left the tag on. It's really nothing," she said.
Her father Sir Bob was not available for comment last night, though the messages system on his mobile phone hinted that he was out of the country in Spain where the family have a holiday home.
A spokesperson for Urban Outfitters was unavailable for comment.
Outspoken Peaches has made headlines recently for partying apparently against her father's wishes.
But reports prompted Sir Bob, 55, to speak out in her defence, telling friends she was "just a normal child" and "an all right kid".
He spoke of his love and pride for Peaches, one of three daughters he fathered with Paula Yates, and went on to speak of the difficult "family story" - a reference to Paula's death from an overdose.
And in his usual forthright manner, he added that if he ever thought she really was in any danger, he would go "f***ing ballistic" at her "like only Bob Geldof can".