I do think some people now use the term "service dog" a bit loosely. They try to get their dog into an apartment or other facilities as a "service dog" that treats high blood pressure, because studies show pet owners have lower blood pressure, or whatever. Not every health benefit conveyed by dog ownership makes a pet a "service dog." But you are right-- even if this dog isn't what I'd call a bona fide service dog, the woman should return him! Geez, like there aren't enough dogs without homes in the world that she could get another one?
At her very own shelter is a very nice Shepherd pup, right now.
[although I wouldn't wish her on a dear little guy like him]