PETITION FOR RULEMAKING RELATING TO RETAIL PUPPY SALES

PETITION FOR RULEMAKING RELATING TO RETAIL PUPPY SALES

Executive Summary

The enclosed Petition requests that the Commission commence a rulemaking proceeding to create a Trade Regulation Rule (TRR) pursuant to its broad authority under the Federal Trade Commission Act (FTCA), defining with specificity the acts or practices that are unfair or deceptive relating to the retail sale of puppies in the United States. These practices include, among other things, pet sellers:

- Falsely representing that they only do business with "reputable breeders" and do not operate or source from "puppy mills;"

- Deceptively advertising that they only source from "local" or "licensed" breeders;

- Labeling the for profit consumer transaction as an "adoption" rather than a sale;

- Offering deceptive, unlawful health guarantees; - Advertising a puppy for sale that does not exist; - Providing falsified veterinary records or offering misleading veterinary

records; and - Selling sick puppies to consumers.

The Petition also requests the regulation of the use of deceptive marketing language that has been shown to mislead consumers including, but not limited to: "purebred;" "registered;" "vetchecked;" "teacup;" and "hypoallergenic."

The Petition is organized into the following seven sections:

- Section 1. Introduction ? Provides and overview of the rulemaking request and an explanation of its objectives.

- Section 2. Summary of Requested Action ? Lists briefly the various deceptive or unfair acts and practices that are prevalent in the retail pet industry, which are explained in detail in Section 5.

- Section 3. Jurisdiction ? Identifies the FTC's authority to promulgate the requested rule.

- Section 4. Legal Background ? Explains the legal theories on which the TRR is grounded.

- Section 5. Factual Background and Analysis ? Provides a summary and analysis of relevant information, including explanations and descriptions of the various deceptive marketing tactics commonly used by pet sellers an analysis of the projected benefits and economic effects, and an analysis of enforcement considerations.

- Section 6. Action Requested ? Offers proposed language for the requested TRR. - Section 7. Conclusion ? Requests that the Commission to commence

rulemaking to establish the proposed TRR.

The Petition attempts to cover all the essential information that would go into an initial FTC staff report in preparation of a proposed TRR. See FTC Operating Manual, ch. 7, Rulemaking ? .3.8.1.1.

Detailed real life examples of the deceptive or unfair acts and practices described in Section 5 of the Petition are appended to the Petition. Also appended are a sampling of complaints received by HSUS about the deceptive practices identified in the Petition.1

This Petition and its Appendices make clear that the problem of deceptive marketing practices in the pet retail industry are prevalent and widespread, and that a targeted Trade Rule Regulation is required to properly address and deter this deceptive, unlawful, and harmful conduct.

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The enclosed disc contains additional complaints submitted to HSUS about these

practices, which can be found in the file marked Exhibit 1.

BEFORE THE UNITED STATES FEDERAL TRADE COMMISSION

THE HUMANE SOCIETY OF THE UNITED STATES, Petitioner,

FEDERAL TRADE COMMISSION, Respondent.

PETITION FOR RULEMAKING RELATING TO RETAIL PUPPY SALES

Laura J. Fox Kimberly D. Ockene THE HUMANE SOCIETY OF THE UNITED STATES 1255 23rd Street, NW, Suite 450 Washington, D.C. 20037 Phone: (202) 676-2334 Facsimile: (202) 778-6134

Table of Contents RULEMAKING PETITION .......................................................................................... 2

Introduction .................................................................................................................. 2 Summary of Requested Action ..................................................................................... 6 Jurisdiction................................................................................................................... 7 Legal Background......................................................................................................... 8 Factual Background and Analysis ............................................................................. 11

A. Puppy Sales Industry ................................................................................... 12 B. Puppy Mills .................................................................................................. 17 C. Consumer Perception and Public Interest................................................... 23 D. Widespread Pattern of Deceptive or Unfair Acts or Practices .................... 25 E. Legal Actions and Publications Further Evidencing Widespread Deception in the Retail Puppy Sales Industry ........................................................................ 67 F. Existing Laws and Individual Enforcement Actions are Inadequate ......... 84 Action Requested ........................................................................................................ 99 Conclusion ................................................................................................................ 111

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