Should he have been permitted to remain in business?
Of course not. The nerve of him to not spy on his customers and be the government's unpaid snitch and toady! He should be held responsible for the actions of others, having his property seized without Due Process. Isn't that the American Way?
In good time, the subjects of our glorious Fatherland will learn that they must keep a close watch on their customers and neighbors, or else.
Legal use vs non-legal use. No brainer.