If you mean fake bags the answer is yes, and the fines are hefty if you get caught. It's not only street vendors that sell dodgy goods a lot of stalls on Ventimiglia, Bordighera and San Remo markets have been closed for selling fake goods. Always a good idea to care when buying at these markets. Some shops have also been closed down because of this.
I'm not a 100% certain but I believe it is also illegal to just buy goods from the street vendors. I think it is a case of up to now the police have only nabbed the vendors but due to a clampdown, and general attemp to raise revenus through fines, there is a danger of this.
Incorrect, there have been several closures in the last few weeks because of knockoffs. There was a big purge about a month ago.
Every so often on a Friday there are random checks at the border on people coming back from Ventimiglia, there are also checks at the peage on the A8.
The crackdown is an ongoing thing.
It's not only on the border that police are conducting checks, police will also stop you at the market if they are suspicious. Obviously, it's not only bags, but any counterfeit goods...I remember a while back a tourist being fined a couple of thousand Euros because of a pair of fake sunglasses.