Yes it is illegal. No you do not want to do that. If the materials or fabric treatments are toxic then you have bigger problems.

Throw it in the rubbish. Never handle fake merchandise.

I have this basketball jersey I got from china. Now I know it's probably replica because I know they make a lot of fakes there. I compared it to a real jersey it looks identical, but my question is if I list it on eBay as lets say.. "Lebron James Cleveland #23 jersey" so something along those lines not saying it's genuine, is that illegal? And can I get in trouble if the buyer finds out?