I say live and let live. It should not be down to the passenger to police First Class accommodation. If a TOC consistently fails to take effective measures to prevent casual fare evasion in FC, save your money and travel in Standard.
The situation is what it is. I'm quite happy to vote with my feet and will probably always live a short commute away from work to the point where not having a seat isn't much of an issue.
I personally don't like the way I have been treated when using First Class accommodation on some services. On one East Coast train passing through the buffet, I was stopped and asked four times by two hosts if I was aware I was in First Class accommodation and made to show my ticket by one of the trolley pushers before I was allowed to take a seat. It's the guard's job to check tickets, who duly came through later in the journey. It's things like this that put me off ever paying for a FC ALR again. After spending £680 on a ticket, I didn't expect to have to face an inquisition like that and didn't see other people being treated the same way - unless other members can confirm that this is in fact, the norm? In which case, I'm even less inclined to bother with it again.
Disapproving looks from other passengers with ignorant preconceptions is not something I'd particularly welcome either. It's not a nice feeling when you've done nothing wrong and somebody in a position of authority appears out of nowhere, making a beeline for you rather than anybody else present and starts asking questions. So no, I don't agree with the notion of having a hotline to report people for suspected fare evasion.
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I suspect that if you are paying a premium for a FC ticket, then you have a reasonable right to want to keep those that have standard tickets out.
Most certainly so. I remember when I was on that ALR and groups of people occupied the compartment saying things like "let's just sit in here nobody is going to come and check our tickets." I just thought it was a waste of money, because those passengers were most likely correct. Similarly, sitting in First on an EMT service only for a group of railway staff in LU uniform occupying the FC compartment and having a loud, raucous conversation at 6am.
Paying the premium, then being annoyed by this sort of thing on a regular basis is not something I'd wish to do long term.