I used to work for a place, and when they finally were inspected (owner never bothered getting an animal protection licence, required here in GA), the "inspector" had no clue about fish - asked US what we were supposed to have! Needless to say we passed inspection (and really, there was no reason to fail, but the inspector really wouldn't have known, her thing was horses and cows...)
Before I opened my doors, I contacted the state's department of agriculture, for an inspection and licence, and they sent an inspector - surprisingly he was a hobbyist too, and we had a great conversation - he spent 2 1/2 hours inspecting my systems, wrote a really detailed report and my licence was issued. Haven't seen an inspector since, but I suppose if there was no complaint, there is no cause. My licence was renewed by mail. I am ready for an inspector any day, but I really don't expect one.
However....
I've seen some atrocities here in my own state. I've been told by people who phoned that same dept. of agriculture in complaint of some places - these are full line stores (present company excluded), with aquatics, herps, rodents, puppies etc., and the complaints varied, but the worst was a cop of my aquaintance who told me she filed a complaint with the state when she was called to a pet shop after hours because the puppies had escaped their enclosure (a fence around a plastic wading pool) and were devouring the hamsters in the kiddie pool beside them (pools had shavings, not water.... but a poor enclosure to be sure!). This all happened in the store's front window, in plain view of the patrons of the restaurant located next to the pet store. Imagine the horror? You're on your way to a nice evening meal, stop to look at the doggie in the window and it's eating Hammy Hamster? Apparently it was a real mess.

That place was not shut down, nor fined that I'm aware of. Took authorities a while to locate the store's owner, the local emergency services did not have contact info, as the owners lived in another county... More people would be in a flap over that, than the condtion of their fish tanks.
I've recently done some work for several folks who were given, ummmm bad advise elsewhere and sold totally inappropriate livestock for their brand shiny new tanks... that angers me too, but it's also the consumers' fault for not doing their own homework. Still, innocent animals were subjected to bad conditions that resulted in their deaths.. and customers were relieved of their money in their naivete and trusting natures....
I've seen some shops in FL (which doesn't require animal protection licences,) that really peeved me off too - tanks where you couldn't see the fish for the murky milky water (freshwater) - herps that stunk to high heaven... I always have to wonder WHO shops at places like these? One would think that Darwinian law would apply here - but some of these nasty places just keep on going - because people keep buying.
Yes, the fish deserve to be humanely treated. That's my argument for reform, as well as the long-term sustainability of the reefs, and the health of the divers and fishers who collect them. That is why I don't carry certain species. That is why I strive to buy net-caught fish. It's better for the reefs and the people who earn their living from the reefs, it's better value for the customer.
Jenn