Unfortunately, puppy mills are alive and well in Japan, even in the chain stores. No one seems to know the answer to the question, "If nobody buys them, what happens to them?"
More sweet and sour pork sir?
Very true, and I encourage people who are looking for pets to adopt one of those animals that is nearby and in need of a home rather than looking far and wide for some dog on ebay. Most people who want a pet are not showing or competing, and don't need a fancy pedigreed pooch, they need a great family mutt.
Horses are sometimes bought and sold with some success online... There's several successful online classifieds for horses, particularly in the upper price brackets where there may not be a wide enough selection in the local newspaper... But I don't think the same is true for dogs... There's no need to buy a pet faraway and ship it to you, except those in the upper brackets of competing, and those people already know how to buy from each other.