So should I report them? And if yes how do I go about thatSounds like a typical backyard breeder. People who breed with no thought beyond "boy dog + girl dog = puppies to sell" frequently take shortcuts, like not registering and tilting their breeding dogs, not doing the recommended health testing on their breeding dogs, and not fully vaccinating/deworming litters.
As well bred GSD puppy from a good breeder typically runs between $1500 to $5000 or so, depending on the lines and the dogs being bred.