It's not allowed, I reported it too. Here's the list off ebay of things you can't sell, 3rd down is where Ebay says puppies can't be sold there.
Prohibited and restricted items Adult Only category alcohol animals and wildlife products – examples include live animals, mounted specimens, and ivory
art artifacts, grave-related items, and Native American arts and crafts catalytic converters and test pipes cell phone (wireless) service contracts charity and fundraising clothing, used contracts cosmetics, used counterfeit currency and stamps credit cards currency, selling describing drugs and drug-like substances drugs and drug paraphernalia electronics equipment – examples include cable TV de-scramblers, radar scanners, and traffic signal control devices
electronic surveillance equipment – examples include wiretapping devices and telephone bugging devices
embargoed goods and prohibited countries – examples include items from Cuba
event tickets firearms, weapons, and knives – examples include pepper spray, replicas, and stun guns (see also
military items)
food and healthcare items gift cards government documents, IDs, and licenses government, transit, and shipping-related items – examples include airplane operations manuals, subway employee uniforms, and U.S. Postal Service (USPS) mailbags
hazardous materials – examples include batteries, fireworks, and refrigerants
human remains and body parts importation of goods into the US – examples include CDs that were intended only for distribution in a certain country
international trading items encouraging illegal activity – examples include an eBook describing how to create methamphetamine
lockpicking devices lottery tickets mailing lists and personal information manufacturers' coupons medical devices – examples include contact lenses, pacemakers, and surgical instruments
military items (see also
firearms, weapons, and knives)
multi-level marketing, pyramid, and matrix programs offensive material – examples include ethnically or racially offensive material and Nazi memorabilia
pesticides plants and seeds police-related items political memorabilia (reproduction) postage meters prescription drugs prohibited services real estate recalled items slot machines stamps stocks and other securities stolen property and property with removed serial numbers surveillance equipment tobacco travel
weeds (see
plants and seeds)