Guide
Avoid selling counterfeit goods
Protect your business from counterfeit goods liability. Covers supplier due diligence, trade mark verification, Trading Standards seizure powers, penalties, and online marketplace duties.
When this applies
This guide applies to all retailers, whether you sell in a physical shop, at markets, or through online marketplaces. Selling counterfeit goods is a criminal offence even if you did not know the goods were fake. You can be prosecuted, have goods seized, and face up to 10 years in prison.
Understanding what counts as counterfeit, how to verify your supply chain, and what to do if you discover suspect stock will help you avoid criminal liability and protect your business reputation.
What counts as counterfeit
Counterfeit goods are products that bear a registered trade mark (or a sign identical or confusingly similar to one) without the trade mark owner's authorisation. Common examples include branded clothing, footwear, electronics, cosmetics, and accessories sold at prices well below the genuine product.
Counterfeit vs grey market goods: Parallel imports (genuine goods imported outside the brand owner's authorised distribution channels) are not counterfeit. However, they may still infringe trade mark rights depending on the circumstances. If you are unsure whether goods are genuine parallel imports or counterfeits, seek legal advice before selling them.
How to protect your business
If you discover counterfeit stock
If you suspect goods in your possession are counterfeit, stop selling them immediately. Quarantine the stock separately from genuine goods. Do not destroy them, as they may be needed as evidence.
Contact your local Trading Standards service to report the issue. If you purchased the goods in good faith and can demonstrate your due diligence steps, this may support your defence. However, continuing to sell goods you suspect are counterfeit removes any due diligence defence.
Review your supplier relationship and consider whether other stock from the same supplier may also be affected. Check whether your business insurance covers losses from counterfeit goods, as many standard policies exclude this.
What happens next
If Trading Standards seize goods from your premises, you will receive a notice. You have the right to challenge the seizure. If goods are confirmed as counterfeit, they will be destroyed.
For ongoing protection, consider joining an industry anti-counterfeiting programme. The Anti-Counterfeiting Group (ACG) provides guidance and resources for retailers.