Good for you for reporting the situation! A year ago, I ran into a similar situation, however, I was not buying any animals. I will warn you to be ready for the possible fall-out that may come your way. The person I filed a report on discovered that it was me that done so, and we are still feeling the repercussions of my complaint.
I honestly believe that if you see a situation where animals are being neglected, and are only being "used" as a source of profit or income, you have a duty to report what you see. So many people just turn a blind eye to it, yet these animals NEED someone to speak up for them.
I know that I would not hesitate to report anyone I feel is being neglectful. My animals are all extremely clean, well fed, well watered and some people even say spoiled. My animals rely on me to properly care for them, if I am unable then I should not be allowed to have them. There are too many puppy millers out there and the worst thing people can do is to just keep buying the animals even if they try and justify in their minds that they are rescuing them. When you rescue/buy from these people, it just means that they are going to continue with their practices. I know it's horrible to say, but when no one buys anything from them, they will either drop everyone off at the shelters or they will turn them loose but at least they will stop. Supply and demand.
