Can consignment shops legally sell fakes?

Selling counterfeit merchandise is illegal. Did you know it is also illegal lto BUY counterfeit merchandise? Of course, it's entirely possible that they believed it was real when they sold it, just as you believed it to be when you bought it. Unless you believe them to be running a counterfeiting ring, simply bring it back and ask for a refund, saying you believe it to be fake. If they are they sweethearts you say they are, they will refund your purchase price. You might tell them to look into the laws regarding sale of counterfeit merchandise and vendors responsibilities so they don't make the same mistake.