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Legal Petition 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;” “vet- checked;” “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. 1 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 1 RULEMAKING PETITION The Humane Society of the United States1 (“HSUS”) submits this Petition pursuant to the First Amendment to the U.S. Constitution, the Administrative Procedure Act, 5 U.S.C. § 553 (2012), and the Federal Trade Commission Act (“FTCA”), 15 U.S.C. § 45 et seq. (2006), to request that the Federal Trade Commission ("FTC" or the “Commission”) take regulatory action to promulgate a Trade Regulation Rule (“TRR”), defining with specificity the acts or practices that are unfair or deceptive relating to the retail sale of puppies2 in the United States. Introduction This Petition identifies a set of deceptive acts or practices under the FTCA exploited by sellers of, and marketplaces for, puppies or dogs that warrant the initiation of a rulemaking. These unfair and deceptive practices are widespread throughout the puppy retail industry and 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” 1 Petitioner, the Humane Society of the United States, based in Washington, D.C., is the nation’s largest non-profit animal protection organization, with millions of members and constituents. One of HSUS’s core campaign goals is the elimination of the deplorable conditions in which breeding dogs are kept in commercial breeding facilities commonly known as “puppy mills.” To that end, HSUS routinely assists governments at the local, state, and federal levels to find reasonable solutions to the problems posed by puppy mills, which include harm to animals and harm to consumers. See generally Puppy Mills, THE HUMANE SOC’Y OF THE U.S., http://www.humanesociety.org/issues/puppy_mills/ (last visited June 7, 2018). 2 While pet retailers sell many different species as companion animals to consumers, including cats, rabbits, birds, reptiles, etc., and use similar deceptive practices to facilitate those sales, this petition focuses exclusively on the sellers of canines because Petitioner has the most empirical evidence relating to the deceptive advertising and sale of puppies to substantiate the need for a TRR. 2 breeders; labeling the for profit consumer transaction as an “adoption” rather than a sale; offering deceptive, unlawful health guarantees; providing falsified veterinary records or offering misleading veterinary records; and selling sick puppies to consumers. Additional marketing language that is often used deceptively and has been shown to mislead consumers includes, but is not limited to: “purebred,” “registered,” “vet-checked,” “teacup,” and “hypoallergenic.” At times, the fraudulent activity is so blatant that the puppies advertised for sale – usually using several of the appealing, but misleading, buzzwords just mentioned – do not actually exist and consumers receive nothing after submitting payment. Many of the deceptive practices utilized by pet sellers are concealing or furthering enormous animal welfare problems. Contrary to what pet retailers tend to convey to consumers, most animals in the commercial pet trade come from inhumane breeding facilities, which often produce sick animals. Puppies sold in pet stores and online are typically produced in puppy mills, breeding facilities that run with little or no regard for animal welfare.3 Because of the deceptive tactics described in this Petition, the reality that the puppy for sale online or in a pet shop could be one of the thousands born to a mother dog who was painfully overbred, and who spent her entire life in a small, stacked, wire-floored cage, getting little or no exercise, enrichment, or socialization, remains hidden from the consumer.4 3 See The Issue, DON’T BUY INTO PUPPY MILLS, http://www.dontbuyintopuppymills.com/the-issue/ (last visited June 6, 2018) (“Most puppies bought in store and online come from mills, overcrowded breeding factories that have no regard for animal welfare.”). 4 Puppy Supply Chain, DON’T BUY INTO PUPPY MILLS, http://www.dontbuyintopuppymills.com/puppy-supply-chain/ (last visited June 6, 2018). 3 A TRR that addresses the practices highlighted in this Petition is in the public interest and its benefits will outweigh the costs of promulgation. Consumers are frequently suffering real harms after being victims of these deceptive practices.
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