How is this puppy mill allowed to stay open?

There's this place called hollywood pets an hour from my house. I've never been inside but there's signs flashing that say pure and designer breed dogs $199.99. Well the dogs don't come with papers obviously and guess what else they sell? Teacup chihuahuas,yorkies, and poodles! They "potty train" them to use puppy pads. My sister-in-law,before she joined our family,got a lhasa apso schitzhu cross who she still hasn't been able to get house broken! What criterea are they following to be legal? btw, you can't view the sire or dame.