Copyright infringement and authroized partner

Dear Sir/Madam, I have a query regarding purchase and sale of goods. I purchased some jewellery items from a retail store of a well known brand. I them put up those items on my online store and am selling those. Now the company has send me a notice requesting to return the goods as I am not their authorized partner. They have further asked me to clarify on my site that I am in no way associated with their brand and no rights to sell their products. They claim that I am falsely represented myself as being their seller. In addition to the above they have asked for 1 million in restitution. I did mention that the products are theirs but in no way led anyone to believe that I represent their brand. I have used images from their website to promote the products. My question is what is my liability here. Thank you for any help that you might be able to provide.