The situation can be really much worse in Italy. Last year we spent a couple of hours sipping wine at a cafe on the Piazza Navona in Rome. We watched a couple of venders selling conterfeit clothes and watches right in front of our cafe. As soon as a tourist would buy goods, they would be arrested by the Italian police. This went on for over an hour and we witnessed more than a dozen tourist arrested. I later chatted with one of the policeman (who spoke perfect English) who told me that it is illegal for anyone to buy conterfeit goods in Italy. I asked him why they did not arrest the venders and he just smiled and shrugged his shoulders.