I'd report her to the RSPCA personally. Or the local council, as with 11 dogs as Kaytee has said, she's got to be breaking some sort of local council laws, quite aside from the fact that breeding so many puppies without guaranteed homes for them is just downright irresponsible!

There was a case recently here in WA where a woman was banned from selling dogs as the majority of her pups had serious health issues and would be sick/almost dying when the new owner collected them, resulting in hefty vet fees. I don't know about selling a 2 week old pup being illegal, but any vet will tell you that it seriously comprimises the dog's health to do so, and could be considered animal cruelty.