Avoid selling counterfeit goods

When this applies

The rules apply to all retailers, whether you sell in a physical shop, at markets, or through online marketplaces. Selling goods bearing a fake trade mark is a criminal offence under section 92 of the Trade Marks Act 1994. The prosecution does not have to prove you knew they were fake. Your only defence is to show you believed on reasonable grounds that the goods did not infringe the trade mark, so check your suppliers and keep records. On conviction you face goods being seized and 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.