Organisers of a popular computer fair in the Black Country have been warned it could be ordered to shut down if they do not stop traders selling counterfeit goods.

Trading Standards have issued the warning to Northern Computer Markets, which runs the weekly fair at Wolverhampton Racecourse in Dunstall Park.

The warning has been made following a raid earlier this month that found more than £50,000 worth of illegal goods on sale. Laptops, sat-nav equipment, PC towers and were all confiscated.

Three traders are now facing investigations for allegedly selling illegal equipment and offering to modify consoles and computers to work with counterfeit goods.

Paul Dosanjh, who is Wolverhampton City Council’s Trading Standards officer, said: “The organisers have a duty of responsibility to make sure they are doing all they can to ensure there is not counterfeit equipment being sold.

“That means having a robust approach to traders and knowing the tell tale signs of illegal traders.

“We have spoke to Northern Computer Markets about this and asked them to sign a contract agreeing on their obligations.”

This contract will be enforceable by the courts – with the market facing closure if the company does not stick within the agreed terms.

Mr Dosanjh said: “The three traders under investigation are now having their computers forensically examined.

“If they are found to have been modifying equipment, that is a serious crime because it means they are not only taking part in counterfeit trading, they are helping to generate demand for counterfeit goods.”

Today bosses at Northern Computer Markets, which is based in Manchester, said they were already working closely with trading standards.

Manager Simon Colderley said: “We are working on numerous measures to alleviate the problems which trading standards perceive there to be.

“We are in regular contact with officers and will remain so.”

The raid on December 8 was co-ordinated after a three month intelligence-gathering operation sparked by a number of complaints from the public.