It is illegal for UK retailers to sell settler goods wrongly labeled as Israeli but how would they know? To avoid a possible criminal prosecution, UK retailers must seriously consider not selling Israeli labeled goods at all, if there is the slightest doubt about their provenance.
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Palestinian groups declare day of mourning and rage after death of Ras al Amud teen (Haaretz)
from the article: U.K. government urges businesses: Label products from settlements