Fake Chanel Bags Sold In “cheap” Store – Illegal/legal?

I was in a “cheap” store earlier, by the bag section and a woman was pondering over a blatantly fake Chanel bag, a bit like this one:http://www.classicollectables.net/_wp_ge…
A sales assistant was trying to persuade the lady to buy it, when she went I said to the would-be purchaser “that bag isn’t real, I wouldn’t waste your money buying a counterfeit product”, the woman thanked me for my help and didn’t buy the bag.
However, the shop assistant overheard and told the manager who then “threw” (not literally) me out of the shop and said I couldn’t return!!
Anyway, is it illegal for them to sell clearly fake Chanel bags, with a fake Chanel logo for £35?
This is in the UK only please.
If it is illegal, what can I do about it?
Thanks.

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