Can I file a complaint?

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Yesterday,my two son and I went to a shop to buy a white thread for my son's schoool project. I wnet to the counter and asked for the clerk's help. Too my surprise, there was a dog on top of the counter, it was similar to an american eskimo dog. My son was surprised too when it barked, my son is not used to having dogs around, so he got afraid and shouted. After this another dog appeared, and youngest son became more terrified and he cried. The store owner then went out, instead of apoligizing to us, she told us that if the dogs attack us, it'll be our fault since my kids taunted the dogs and they will not be responsible for anything. At this point, I really got mad, my kids were not taunting the dogs, they got terrified that's why they shouted. Isn't that a normal reaction of terrified kids? I told the owner that they should not have dogs inside the store for the simple reason that it may harm customers. She said, its their right and she see no problem with it. I didn't bother answer back because my kids are with me and their safety is my concern, the dogs may attck us. Do you think its right to have dogs inside a store...without any leash? Should I file a formal complain against the store owner?