Hello my friend! :D

That is the most ridiculous thing I've ever heard. You and your family are so far from being a puppy mill, this lady must have confused you with someone else.

Your animals, big and small, are obviously well fed and cared for, the puppies and their mom look well socialised and playful, so I can't figure out why she'd say that to/about you.

Good for you for rising above returning the kind behaviour she put out, for being the better person, and making a bit of currency for your family in the process. :D

God bless you and your wonderful family. :D Have an awesome day my fabulous friend! :D