Lars Rajahvem, 41, of the Cheers off-licence in Penge Road, was found to be selling five bottles of vodka, branded Kirov, as well as 39 fake lighters.
Trading Standards prosecuted and magistrates in the London borough fined Rajahvem - who pleaded guilty – £460 with £1,278 costs.
Councillor Steve O’Connell, cabinet member for safety and cohesion, said: “Unscrupulous traders who try to con local people into buying fake goods are bad news both for consumers and the many reputable companies in the borough.
“Both these products are potentially lethal for consumers.
“Fake vodka has been found to contain high levels of methanol which is dangerous to health and fake lighters are badly made and could explode causing serious burns to the user.
“The message is clear. We will not tolerate this type of trader in Croydon and we will prosecute anyone found selling counterfeit goods in the borough.”