If the business is not properly licensed, you can report them to the licensing authority. The police do not get involved in these types of civil matters.
This answer is provided for guidance only. DO NOT rely on it as legal advice. We DO NOT have an attorney-client relationship. You should contact an attorney in your area for a one-on-one consultation before pursuing any action or making any decisions.
Other lawyers have given some fine answers. One additional point to consider: if your own lawyer knows your business is doing something against the law, that lawyer sometimes has a duty to report to authorities. Basically that duty would arise if the lawyer knows, or has good reason to know, of actual or likely bodily harm. Otherwise, the lawyer generally has to preserve the confidentiality of the client.