The world of water near me isn't as bad as that, but I won't buy fish from them. Great for equipment supplies but having looked round their tanks, I wouldn't buy fish from them.
You were absolutely right to point out the error of their ways, its just a pity the bloke didn't listen to you because a) he's an arrogant #### who thinks that because he works in a fish shop, he knows everything there is to know and b) his ego clearly can't take being told he's done the wrong thing by someone who's alot younger than him.
As for his comments about knowing best, the evidence speaks loudest - the fish were in p**s poor condition and clearly struggling. He sounds like one of those people who rather than back down and say, "Hmmm, I don't agree but don't know enough about the subject to say you're definately wrong," will talk c**p and state his (rather dubious) credentials in a p***ing contest he know's he'll win.
Either that or he's been fed alot of duff info by whoever trained him. Good on ya for pulling him up on it, if nothing else you may have put enough doubt in his mind to make him go and look it up. I doubt it but you never know.