The city is cracking down on the sale of counterfeit luxury goods, seizing $1 million of fake bags and watches.

Police this week shut down 31 stalls along Canal Street, a favorite for bargain hunters.

“We’re just not going to have any tolerance for people selling knockoffs. It’s not fair to companies that invest in their brand,” Mayor Bloomberg said. “We want people when they buy things to know exactly what they’re getting.”

The bootlegged goods included items masquerading as Tiffany, Chanel and Gucci.

A special unit had been making undercover purchases of fakes before the raids.