While I agree that shops knowingly doing this deserve to be shut down, if the guy is genuinely misinformed it might be best to just inform him properly before tarnishing him with a bad brush.He is not telling you the truth at all. There are lots of stories about shops pulling this kind of crap to try and sell you something else. I seriously hope you inform him of your findings and then inform him that you will be posting the name of his operation here and on your facebook page if you have one. May save someone else from being screwed over. Shops like this do not deserve to make it. They should be shut down.
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OP, let the guy know you found his information to be inaccurate first and then decide whether he was being dishonest or just misinformed.