While some might regard the move as political correctness gone mad, the RSPCA applauded the decision - the first ban of its kind in the North West.
Liverpool's move followed concern from Liberal Democrat Coun Jean Seddon about the welfare of the thousands of goldfish that change hands at fairs in the UK every year.
Goldfish handed out in small plastic bags can suffer stress, lack of oxygen, and death, particularly when the water temperature rises in the sun.
Heather Holmes, spokeswoman for the RSPCA in the North West, said: "We would support the council on this - it's a sensible move.
"If people want to take on a pet, they need to think about it very carefully.
"Winning a goldfish at a fair does not require people to give any kind of thought as to whether they can be responsible for an animal.
"Once the novelty value has worn off, they are left with something which they have no idea how to care for.
"It is all very distressing for the goldfish."
The Liverpool councillor who raised the issue defended the importance of looking after the rights of goldfish.
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