Lawyers are considering prosecuting campaigning cobbler Tony Martin for breaching the peace by filling the window of his shop on Claypath with newspaper cuttings chronicling the problems of Durham City Council.
Police have confirmed that they have sent a file to the Crown Prosecution Service after council staff complained about the display.
Mr Martin vowed to become a thorn in the side of local officialdom after parking restrictions were introduced outside his shop, hitting his trade.
He said: "It is a complete joke and a waste of public money."
The CPS said a case could be pursued if the display provoked a violent reaction in someone, such as breaking the window.
A council spokesman said the authority had not made the complaint but staff may have spoken to the police.
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