Oh no...poor puppy :(
Puppies are bad b/c they do not know any better. You have to first teach them (through
positive reinforcement)
how to behave. I have never used an E-collar, but I wouldn't until much later in life (and ONLY if there was a certain issue that could not be fixed through positive training). Perhaps the breeder can recommend a better trainer.
Your parents are teaching the puppy that learning = pain. Learning should be FUN!! Every time I get out the "clicker" my dog comes to "attention". She absolutely loves learning; her whole attitude changes...she becomes very intent on pleasing me. Shocking a puppy causes frustration...this is what he is thinking: "sit...what the heck does sit mean...oh no, if I don't figure it out soon I will be hurt...AH!! What should I do...shock

???" (well, thats my opinion at least).
When I train w/ my dog she thinks "sit...hmmm, let me try as many things as possible...if I do it right, I get a reward

!". No anxiousness there, just WANTING to learn.