From what we've spoken to lawyers about, it is only illegal if you advertise and represent the items as authentic. We clearly state on the home page and on the FAQ page, that they are in fact replicas and are meant for novelty purposes only. Not to represented as the real thing in any way shape or form.
You obviously didn't speak to
this lawyer.
That defense was tried a long time ago in a fake Rolex watch case. The infringer argued that no purchaser would mistake a 10 dollar replica Rolex for the real thing. However, the point wasn't what the purchaser thought, the confusion would be in the minds of people seeing the watch as worn by the purchaser.
I am sorry, but no lawyer is going to tell you that selling "replica" designer bags is legal. It most certainly is not legal.
Name one of the "lawyers" to whom you've spoken.
no restrictions, seller responsible for the listings
That's not going to help you either. Operators of flea markets and other businesses of that sort have been held liable for infringement when the operator knew or should have known that people were selling counterfeit merchandise. Here, you are
inviting counterfeiters to come and participate in your market.
It's incredible how deliberately naive people can be.