Of course it is. It's a violation of federal trademark infringement law to sell counterfeit/fake/pirated/replica/knockoff/copied goods in every state.
Those are valuable brands because their trademark owners spent a lot of money to advertise them and make them famous and prestigeous. If you sell poorer quality products to convince or confuse consumers that your goods are genuine, that's trademark infringement, and you could be sued civilly and/or criminally prosecuted.
PLEASE READ THIS BEFORE YOU COMMENT, EMAIL ME OR PHONE ME. I'm only licensed in CA. This answer doesn't make me your lawyer, and neither do follow-up comments and/or emails and/or phone calls, and you shouldn't expect me to respond to your further questions if you haven't hired me. We need an actual agreement confirmed in writing before any attorney-client relationship is formed. This answer doesn't constitute legal advice, and shouldn't be relied on, since each state has different laws, each situation is fact specific, and it is impossible to evaluate a legal problem without a comprehensive consultation and review of all the facts and documents at issue.
There are several potential sources of liability in situations like this: federal and state counterfeiting and trademark infringement, federal and state trademark dilution, federal copyright infringement, state unfair competition, state consumer protection statutes, city-specific ordinances, etc. (See http://nyti.ms/fFp0fs.) I walked through many of these causes of action in one of my blog posts, which addressed a lawsuit brought by Coach against Jo-Ann Fabrics: http://lawoffashion.com/blog/story/04/12/2011/48. The bottom line: there are *numerous* ways you could get in trouble for this -- including criminally, as the previous answer indicates.
This answer does not constitute legal advice, and should not be relied on in place of a consultation with an attorney. No attorney-client, contractual, or fiduciary relationship has been formed as a result of this post or anyone's use of it. The only manner in which an attorney-client relationship can be formed with Charles Colman Law, PLLC, is via a countersigned letter of engagement on CCL letterhead. Charles Colman is only admitted to practice law in New York State, and before New York federal district courts. Although he endeavors to answer all Avvo questions knowledgeably, he cannot and does not provide any guarantees as to the thoroughness or accuracy of his responses.
Yes. This is not just a civil violation of copyright, trademark and various state and common law theories. This can constitute criminal misconduct---and prosecutions for illegal selling of counterfeit goods are increasing. In short, you can go to jail for this.