I think all any govt/police force can do is harass the sellers and keep them moving around. I imagine those folks in NJ will get fined which they may or may not pay, get their products confiscated, and be at it again another day. That’s what happens here except the ‘fine’ is usually a bribe to the cops - amounts to the same thing.
The product is easy to smuggle in; the demand is there; there is no practical way to identify buyers after the purchase or show criminal intent during it; and it is a crime nobody can work up much indignation about or sympathy for these companies.
A friend of mine worked for years for a high-end clothing company; one problem they could never address was the theft of tags. People would steal them, and sow them onto cheap Asian crap, and it would look like the real deal.
There is definitely pressure from corporations to deal with this; there are an increasing number of arrests outside Giants & Jets games in the same area for unlicensed merchandise.