I don't think you answered the question...

Outlander you might read the question again. If I am reading it correctly, and I could be wrong, "Truth" was asking if it was appropriate for an authentic Indian, who owns a store, to sell the art of fake Indians. I don't think he was asking if it was ok for Indians to sell their goods in a store owned by a non-Indian.

Here is my answer to the question. It would be a violation of the Indian Arts and Crafts Act for anyone (Indian or non-Indian) to offer for sale a piece of artworked claimed to be Indian-made unless the artist was a member of a federally or state recognized tribe. An Indian store owner has as much responsibility to obey the law as a non-Indian. And if an Indian is in violation of the law, he/she should be held accountable.