Police and trading standards officers closed stalls and seized fake goods at the bank holiday market at Brighton Racecourse.
Brighton and Hove City Council said: “Council trading standards staff, working with colleagues from East Sussex, Sussex Police and representatives of several brand holders, went to Brighton racecourse market on Bank Holiday Monday.
“Eleven stalls were closed down or were abandoned as officers approached them as a result of the enforcement activity
“Officers seized a large quantity of counterfeit goods including 1,500 pouches of counterfeit tobacco with a retail value of about £23,000.
“Other items seized included clothing, accessories, DVDs and sunglasses. The estimated total retail value of the haul is £98,000.”
A 27-year-old man from East London was arrested on suspicion of having counterfeit tobacco and was released on police bail until Monday 21 October while inquiries continue.
The council said: “As part of their work to support local legitimate businesses, trading standards and Sussex Police along with the Intellectual Property Office (IPO) have been working with outdoor market organisers across Sussex to stop the sale of counterfeit goods at local markets.
Detective Inspector Chris Neilson, of the Sussex Police Economic Crime Unit, said: “While many people see the sale of counterfeit goods as a victimless crime, often the goods are poor quality and can in some cases be dangerous.
“Many people do not realise that there are clear links between counterfeit goods and organised crime, including terrorism and people trafficking.
“The sale of these goods also affects local legitimate businesses.”
Councillor Pete West said: “Those that are selling counterfeit goods are undermining the vast majority of market traders who operate legitimately, as well as potentially putting the public in danger and contributing to crime.
“We are committed to working with the police and other partners as the most effective way of tackling the problem.”
Police and trading standards urge anybody with information about counterfeit goods being sold to report it to them or to the independent charity Crimestoppers on 0800 555111.