
Husky the Kennel club also have to work within the restrictions of law and could easily be taken to court for restrictive practices so they do walk a tricky path when making their rules about registration services.
Unfortunately puppy farming isn't ilegal (It would also be difficult to define as there are many bad breeders who breed from one bitch every season who are as bad as the worst puppy farmers, and there are commercial kennels who keep their stock in good conditions, even if we don't agree with breeding purely for commercial gain), by the government it is considered business like any other.