How to Spot A Puppymill
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Puppymills aren't clearly marked with signs that state "We Run A Puppymill", so it's your job to figure that out. The main thing you have to learn is the differences in breeders- there are many actually.
Show/Hobby Breeder. These do not consider dogs to be a business. They typically only breed a litter when they need a puppy to show and/or to continue their lines. They don't breed soley for pet puppies to sell. They get health clearances on their dogs prior to breeding since they don't want to carry on problems, and they are very active in their breed by showing/competing against other dogs. They have contracts pertaining to the health of their dogs and what all you are permitted to do with them (spay/neuter contracts, etc). Not all reputable breeders show their dogs, but they all should perform the health tests and breed according to the breed standard.
The Pet Breeder. This is simply someone who buys a pet from someone who does not care what happens to the dog after the sale is over (backyard breeder, broker, puppymill). They breed thier pet with another pet they own or locate a stud in their town (may or may not be of the same breed). It's extremely rare for breeders such as this to have any health records stating that their dogs are free from hip disorders, eye disorders, etc. It is also common for these type of breeders to begin selling off the puppies at an early age such as 5-6 weeks old since this is when the mother of the litter begins to "get tired" of the puppies and the puppies begin eating dog food- which cuts into the "breeders" profits. The puppies are also no longer being cleaned up after by the mother dog, so this makes work for the "breeder", and they want them out the door as quickly as possible.
The Backyard Breeder. This is simply an extreme version of the pet breeder- they usually have more than one female, and will always have litters on the way or for sale at any time.
The Puppymill. Puppymills usually don't advertise anything at all, unless it's on the internet. Most of their sales go to brokers or pet stores, not the general public. Their dogs are kept in cramped cages, rarely ever cleaned, dogs are not groomed/taken care of, they are fed a low quality diet and some may even mix in "fillers" such as sawdust to the food so that it will cut down on food bills. Once the dogs are not able to breed, they are killed (usually not humanely). You can usually spot these types on the internet by the large amount of breeds they offer.
The Broker. This is simply a "middle-man". They buy dogs in large quantities from puppymills and then sell them off to pet shops, or will even advertise on the internet as a breeder and simply "fill the orders" with the puppymill dogs. You can usually spot these types on the internet by the large amount of breeds they offer.
The Pet Shop. The dogs you see at pet shops come from two places- either puppymills or backyard breeders. No reputable breeder will ever allow a pet shop to sell a dog for them. Many times the dogs aren't even of the breed they claim they are, many are sickly, and for the most part, the dogs are not well cared for. There are some exceptions to the care the puppies get AT the store, but typically the dogs are all from the same circumstances.