That screams puppy mill for sure!!! USDA breeders is not a good thing, most puppy mills are USDA breeders. So yea they are probably telling the truth but I guess they think no one really knows what a USDA breeder is and that it is a bad thing not a good thing.
I always feel so sorry for the puppies in stores, they all look so scared and helpless. I want to rescue them all but I know if I take just one puppy home, there will be another puppy in its place.