Second hand clothes have found a popular market in most of Cairo and the other governorates streets. This has extremely damaged the manufacturing and merchandizing of the new ready-to-wear clothes which are already deteriorating due to the soaring production costs. Bearing in mind that such second hand clothes represent a challenge to public sanitation. This research aims at studying the risks and damage resultant from consumers' purchasing of the second hand clothes. It also aims at measuring the effect of the educational level, family's average income and residential location on purchasing the second hand clothes. The significance of the research is due to; shedding light on the risks resulting from merchandizing the second hand clothes on the Egyptian economy and benefitting from the study results in setting proposed solutions to face the problems and difficulties challenging the Egyptian local ready-to-wear clothes industry. The problem: What are the reasons that urge consumers to purchase the second hand clothes? What are the resources and types of imported second hand clothes? What are the risks and damage resulting from merchandizing the second hand clothes on the Egyptian local ready-to-wear clothes industry? What are the suggestions of the specialists and businessmen to solve the problem of importing and merchandizing the second hand clothes? Significance of the research: Shedding light on the risks of merchandizing the second hand clothes on the Egyptian economy. Contribution in finding certain proposed suggestions and solutions to face the problem of merchandising the imported second hand clothes. Objectives of the research: Measuring the effect of the educational level, family's average income and residential location on female consumers' purchase of the second hand clothes. Measuring the effect of female consumers' purchase of the second hand clothes from markets on the local ready-to-wear clothes industry. Identifying the resources, types and shapes of bales of imported second hand clothes. Studying the risks and damage resulting from purchasing the imported second hand clothes. Methodology of the research: The researcher follows the descriptive analytical approach in collecting and analyzing data about the markets of the second hand clothes. Sample: The research sample comprises: Ten academic specialists in the manufacturing of the ready-to-wear clothes, Ten importers and vendors of the imported second hand clothes, A sample of the female consumers totaling 90 ladies. The most important proposals and solutions: 1. The Government shall take some measures to limit the import of the second hand clothes. 2. The government shall impose heavy taxes on commercial shops in the second hand clothes markets. 3. Sanitary control shall be imposed on the imported second hand clothes bales. 4- Health awareness by different media about the potential health hazards of the second hand clothes. 5 - Solving the problems of expensive production costs, which cause the rise in prices of clothes products against their counterparts of the second hand clothes. 6- The Government shall reduce the customs taxes on the production requirements such as yarn, zippers, clothes ornaments, freckles and etc. 7 - The government shall impose strict restrictions to prevent sellers from occupying the pavements in many squares and in front of the metro stations, and also in the various governorates of Egypt and the sale shall be only through authorized shops.