Items have been seized by police after a UVF flag and Parachute Regiment flag were pictured for sale at a stall in Derry on Saturday during the Apprentice Boys parade.
Police said that a report was made about the incident, and said that they were investigating whether a criminal offence had been committed.
Police later said “a number of items” had been seized at the stall on Glendermott Road, at the junction of Clooney Terrace/Limavady Road.
Earlier on Saturday, images posted to social media showed flags from the Parachute Regiment and UVF for sale at the stall, prompting criticism.
Responding to one of the images, SDLP leader Colum Eastwood said “This is disgusting”.
Derry City and Strabane area commander Chief Superintendent Ryan Henderson said: “On Saturday afternoon we received a report in relation to flags, including the Parachute Regiment flag, and other items that were being sold from a stall on Glendermott Road, located at the junction of Clooney Terrace/Limavady Road in the city.
“We understand the sensitivities around flags and emblems, and the difficulties and challenges these can cause.”
Inquires are continuing, police said.
Before the parade, UDA and UFF flags were put in the Waterside area sparking outrage from a local Sinn Fein councillor.