Several years ago, my daughter and I found an older yorkie and brought it home with us. The poor thing could barely breath, it was just pitiful.
When we found the owners, he told us that "Molly" was his deceased Mother's dog and had emphysema from his Mother smoking around her for years. Which ironically is what killed his Mother as well. So tell your friend, that if the breeder told her that, she's smoked one too many ciggies! Common sense tells us that if it's bad for humans, it's bad for dogs!
To be honest, I don't even like for anyone to touch my dogs if they've been smoking. I can smell it on their coats. YUCK!