Questions and

Answers:
Retail Pet Store
Final Rule

Q. What is the Animal Welfare Act?

A. Passed by Congress in 1966, the Animal Welfare

Act (AWA) sets general standards for humane care

and treatment that must be provided for certain

animals that are bred for commercial sale, exhibited

to the public, used in biomedical research, or

transported commercially. The AWA does not apply

to coldblooded animals or to farm animals used or

exhibited for agricultural purposes. People licensed

under the AWA must provide their animals with

adequate housing, sanitation, nutrition, water, and

veterinary care. They must also protect their

animals from extreme weather and temperatures.

Q. Why are you changing the defi nition of a

retail pet store in the regulations written to

support enforcement of the AWA?

A. Over the years, APHIS has received increasing

complaints from the public about the lack of

monitoring and oversight of the health and humane

treatment of dogs and other pets sold sight

unseen—often over the Internet. Our primary goal

is to ensure that certain people who sell pets at

retail sight unseen are regulated under the AWA, so

that these animals can be monitored by our Agency

for their health and humane treatment. To do that,

we revised the defi nition of “retail pet store” in our

regulations to bring the animals involved in these

“sight unseen” transactions under regulation so that

they receive basic standards of care. We also

provided greater regulatory latitude for certain types

of small breeding operations consistent with this

change.

Q. How many comments did you receive on the

proposed rule?

A. The proposed rule to amend the definition of a

retail pet store was published on May 16, 2012, and

included a 60-day public comment period. At the

request of stakeholders, the comment period was

extended an additional 30 days and closed on

August 15, 2012. During the 90-day comment

period, we received more than 210,000 comments:

75,584 individual comments and 134,420 signed form

letters. We also received 213,000 signatures on

petitions submitted by organizations supporting or

opposing the proposed rule. We reviewed every

comment we received and, based on stakeholder

feedback, we made a number of changes to the final

rule.

BASICS OF FINAL RULE

Q. Under the fi nal rule, what is the new defi nition

of a retail pet store?

A. In the final rule, “retail pet store” means a place of

business or residence at which the seller, buyer, and

the animal available for sale are physically present so

that every buyer may personally observe the animal

prior to purchasing and/or taking custody of it after

purchase. By personally observing the animal, the

buyer is exercising public oversight over the animal

and in this way is helping to ensure its health and

humane treatment. Retailers who sell their pet

animals to customers in face-to-face transactions do

not have to obtain an AWA license because their

animals are subject to such public oversight.

Under the AWA regulations, a “retail pet store” is

also a place where only the following animals are

sold or offered for sale as pets: dogs, cats, rabbits,

guinea pigs, hamsters, gerbils, rats, mice, gophers,

chinchillas, domestic ferrets, domestic farm animals,

birds, and coldblooded species. It is important to

note, however, that APHIS does not regulate

domestic farm animals used for food and fi ber, or

coldblooded species.

Q. Why did APHIS revise the definition of a retail

pet store?

A. This fulfills a commitment APHIS first made in

response to an Office of Inspector General (OIG)

audit recommendation. The OIG audit found that

more than 80 percent of sampled breeders were not

licensed under the AWA because they sold pets over

the Internet and claimed “retail pet store” status. As a

result, the OIG found that these breeders were not

being monitored or inspected to ensure their animals’

overall health and humane treatment, which led to

some buyers receiving unhealthy pets—especially

dogs. In its 2010 report, the OIG recommended that

such operations should not enjoy “retail pet store”

status, and the resulting exemption from consumer

oversight and APHIS inspection. This final rule

achieves what the OIG suggested. It also fulfills

APHIS’ commitment made in response to a “We the

People” petition to the White House.

The previous regulatory definition of “retail pet

store” was developed more than 40 years ago. It was

meant to include traditional pet stores, hobby

breeders, and other retail businesses where customers

could personally observe an animal for sale prior to

purchasing and/or taking custody of it. Such

establishments were not regulated under the AWA

because it was assumed that customers were

providing public oversight simply by being able

observe the animals prior to purchasing or taking

custody of them. By revising the definition of “retail

pet store” to require retailers engaging in sight-unseen

sales to be regulated, we are bringing more pet

animals sold at retail under the protection of the AWA.

We are also ensuring that the definition of “retail pet

store” within our regulations is consistent with the

AWA.

Q. How will the final rule affect traditional retail

pet stores?

A. The final rule will not affect traditional retail pet

stores. These “brick and mortar” stores will continue

to be exempt from Federal licensing and inspection

under the AWA just as they have been. However,

traditional retail pet stores that also sell animals sight

unseen must be licensed and inspected.

Q. Why is it important for a buyer to observe an

animal personally before taking custody of it?

A. Personal observation of an animal is an important

way that a buyer can evaluate the health and humane

treatment of the animal. This requirement is implicit in

the AWA itself and was implicit in the original definition

of “retail pet store” in our regulations; the final rule

makes it explicit.

Q. Do sellers who breed pets at their residences

have to allow buyers into their homes in order to

be considered a retail pet store?

A. No. The regulation allows for sales to take place at

any location agreed upon by the seller and the buyer.

This could be a home but it could also be another

mutually agreeable location.

Q. If a person cannot personally observe an

animal before buying it, can someone else stand

in?

A. Yes. Some commenters to our proposed rule noted

that it would be difficult for certain people—for

instance, foreign, disabled, or elderly customers—to

personally observe the animals they wish to buy. We

consider the buyer of a pet animal sold at retail to be

the person who takes custody of the animal after

purchase, even if this person is not the ultimate owner

of the animal. This person cannot, however, be a

commercial transporter or intermediate handler.

RESCUE GROUPS AND POUNDS

Q. How will the final rule affect rescue groups that

participate in off-site adoption events?

A. People who engage in face-to-face transactions at

a place other than their premises, which include offsite

adoption events, are considered to be subject to

public oversight. As a result, they do not need to

obtain a license.

Q. What does the final rule mean for State, county,

or city owned and operated pounds, and shelters,

as well as humane societies and other

organizations that operate under a contract with

those jurisdictions?

A. The final rule has no effect on these entities.

These agencies and organizations are not regulated

under the AWA as long as all of their activities are

under the jurisdiction of the municipality, township, city,

county, or state and do not fall under APHIS

regulation.

WORKING DOGS

Q. Does this final rule bring working dogs sold at

retail under regulation?

A. Working dogs are generally understood to be dogs

that are not sold for use as pets but for purposes such

as hunting, breeding, and security. Dogs sold at retail

for these purposes do not come under regulation

under the AWA.

Q. Will APHIS require working dog breeders to be

regulated if they occasionally sell an animal as a

pet that has proved unsuitable as a working dog

due to birth defects, poor temperament, or other

flaws?

A. Individuals who intend to breed and sell dogs at

retail as working dogs may occasionally raise a dog

that lacks the characteristics that would enable it to be

sold or used for its intended working purpose. As long

as the individual originally intended to raise and sell

the dog at retail for that purpose and the individual

continues to market his or her dogs for that purpose,

the individual could sell the individual dog at retail

without needing to be regulated by APHIS.
RABBIT, FARM ANIMALS, AND COLDBLOODED

SPECIES

Q. How does the final rule affect rabbit breeders

who raise rabbits for food, fur, or preservation of

bloodlines?

A. The final rule does not change our regulation of

breeders who sell rabbits or other animals for use as

food or fiber (including fur). Anyone selling animals

only for food or fiber is exempt under the AWA. People

selling rabbits at retail for breeding purposes (such as

preservation of bloodlines) are not regulated.

Q. Will children who raise rabbits as part of a 4-H

project have to be licensed under the final rule?

A. No. 4-H participants who sell their rabbits for food or

fiber (including fur) or in face-to-face transactions at

county fairs, rabbit shows, and other agricultural

exhibitions do not have to be licensed.

Q. What will this rule mean for domestic farm

animals and coldblooded species?

A. As is the case for rabbits, normal farm-type

operations that raise, buy, and sell animals only for food

and fiber (including fur)—as well as businesses that

deal only with fish and other coldblooded animals—are

exempt from regulation.

BREEDING FEMALES

Q. Why are you now allowing people to keep up to

four breeding females without having to be

licensed under the AWA?

A. Under our previous regulations, we considered

breeders who owned up to three breeding females

(dogs, cats, or small exotic or wild mammals) to be

hobby breeders, who provide sufficient care to their

animals without our oversight. Based on a recent

review of compliance among facilities we regulate, we

believe that even with the addition of another breeding

female, these hobby breeders are likely to conform to

minimum AWA standards. Hobby breeders should

remain aware, however, that they are exempt from AWA

regulation only if they sell the offspring born and raised

on their premises for pets or exhibition. They may sell

these animals at retail or wholesale without being

regulated.

Q. How will the four-breeding-females rule apply to

breeders with a partial ownership interest in a

number of breeding animals?

A. Partial ownership of breeding females is a standard

practice among small-scale residential breeders.

Owners (even if they only partially own the animals)

with four or fewer breeding females on one premises

do not need to be licensed by APHIS.

Q. Under the final rule, what constitutes a breeding

female?

A. Only female animals with the capacity to breed are

considered “breeding females.” Females that an APHIS

inspector decides cannot breed due to age, infirmity,

illness, or other issues are not considered “breeding

females.”

EFFECTS ON BREEDERS

Q. How many breeders will be affected by this

rule? How did you come up with these figures?

A. We estimate that between 2,600 and 4,640 dog

breeders, about 325 cat breeders, and no more than 75

rabbit breeders will be affected by the rule. This

represents a portion of the breeders we identifi ed

through online breeder registries and by assuming that

there are some additional dog breeders using remote

marketing methods not included in those registries.

This does not include breeders who will not be affected

by the rule because they do not sell pets, because they

don’t have more than four breeding females, or

because they sell pets face-to-face. Since a very small

percentage of cats in the United States are purebred

and raised by breeders—and even fewer appear to be

marketed over the Internet—we assumed the number

of affected cat breeders would be a small portion of

those we identifi ed. Similarly, it is uncommon for rabbit

breeders to sell offspring as pets or sight unseen;

generally, rabbits are sold face-to-face at auctions,

exhibits, and fairs where buyers are physically present.

The rule will also affect some currently licensed

wholesale breeders. Expanding the licensing

exemption from three to four breeding females could

reduce the number of wholesale licensees. We expect

that the number of current licensees that will fall below

the exemption threshold following the implementation of

this rule will be very small.

Q: How will USDA identify breeders who may need

to be regulated?

A: APHIS will use various methods to access publicly available

information to identify and inform those

individuals who may need an AWA commercial

breeding license. These methods include evaluating

customer complaints against breeders and Internet

retailers, as well as reviewing the marketing and

promotional materials of breeders and Internet retailers.

In addition, we will review public information available

online to identify sellers that potentially meet the

defi nition of commercial breeder in the AWA. By

viewing publicly available information, APHIS can

educate individuals about the AWA, and if needed,

assist them with obtaining licenses. This will ensure

that all animals that should be covered by the AWA will

receive humane care and treatment.
Q. What is the timeline for compliance?

A. We plan to incorporate newly affected entities into

our existing regulatory structure using a phased

implementation for conducting initial prelicensing

inspections and compliance inspections. Factors we

would consider when determining when and how

frequently such inspections would take place include

but are not limited to: 1) whether an entity has applied

for a USDA license; 2) whether an entity is already

subject to some degree of State, county, or local

oversight, and the nature of that oversight; and

3) whether an entity is the subject of a legitimate

complaint and the nature or severity of that complaint.

We will conduct periodic compliance inspections based

on a risk-based inspection system that calculates the

level of risk of noncompliance.

Q. What will newly regulated breeders need to do

to come into compliance with this final rule?

A. Commenters on the proposed rule expressed

concern about the adjustments newly regulated

breeders would need to make and the possible costs

they would incur. We believe, however, that the vast

majority of breeders affected by the rule already

maintain standards of housing, cleanliness, and care

that well exceed minimum AWA standards. Therefore,

these newly regulated but otherwise compliant breeders

will incur minimal costs only for licensing, identifi cation

tags, and recordkeeping.

Q. How much will it cost for newly regulated

breeders for licensing, identifi cation tags, and

recordkeeping?

A. For a typical dog breeder with 6 breeding females

and a total of 74 dogs on the property over the course

of a year, we estimate that the typical annual cost for

licensing, identification tags, and recordkeeping would

be between about $284 to $550 or from about $4 to

$7.50 per dog.

Q. What will the costs be for newly regulated

breeders who need to upgrade their facilities or

change their facilities to comply?

A. We recognize some breeders will need to upgrade

their facilities and/or change their operations to meet

the basic AWA standards of care. We acknowledge

that, in some cases, these upgrades and changes will

cost them more than the minimal costs of licensing,

identification tags, and recordkeeping. However, such

facility and structural improvements should be one-time

investments in their operations. Again, we believe that

the vast majority of breeders affected by the rule

already maintain standards of housing, cleanliness,

and care that well exceed minimum AWA standards.

Q. Did APHIS revise its analysis of how many

breeders would be regulated?

A. Based on input from commenters, we were able to

revise and strengthen our analysis of the number of

businesses that would come under regulation and the

likely fi nancial impacts for them. Compared with our

analysis in the proposed rule, we do expect more

breeders will come under regulation. However, we

believe the costs for the majority of those breeders will

be relatively low, and only for licensing, identification

tags, and record keeping.

Q: Will consumers pay more for pets as a result of

the final rule?

A. We believe that even if breeders’ total costs of

compliance are passed on to buyers, they will generally

be negligible, in keeping with our analysis above.

Further, costs previously borne by some consumers

may now be borne by producers. For example,

breeders who previously provided inadequate

veterinary care or skipped vaccinations for their

animals will now bear those costs.

Q. Won’t the costs for residential breeders lead

them to stop breeding their animals?

A. The cost of a license is highly unlikely to cause

affected breeders to change their normal business

operations. Even at the highest end of the range—an

estimated $760 for a breeder with gross revenues in

excess of $200,000—the cost of a license is less than

the sale price of many purebred dogs. The majority of

the breeders that may be affected by this rule already

meet facility standards and should incur few other

costs.

Q. Will regulated breeders who keep their dogs in

their homes have to put them in a kennel?

A. Generally not. The AWA regulations define a

“primary enclosure” to mean any structure or device

used to restrict animals to a limited amount of space—

which means that a home can be considered a dog’s

primary enclosure. If a room of a house is used as a

dog’s primary enclosure (for instance, a whelping room

or nursery), AWA regulations and standards apply to

that room.

However, if a dog breeder allows his or her dogs to

have free run of the entire house, we have to determine

whether the home can house the animals within AWA

standards. If the breeder has a kennel or cages that

the dogs can stay in inside the home that meet AWA

standards, the breeder has satisfied the primary

enclosure requirements. A number of currently licensed

wholesale breeders maintain their animals in their

homes.
Q. Why are you removing limits on the source of

gross income from the licensing exemption for

people who breed certain species and derive no

more than $500 in annual sales?

A. This change gives breeders of rabbits, guinea

pigs, and certain other animals the ability to sell

those animals at retail (subject to the $500 annual

gross income limit written into the AWA) and still

remain exempt from AWA licensing and inspection

requirements.

Q. Why isn’t the $500 limit on gross income sales

being adjusted for infl ation?

A. A number of commenters said that given inflation,

the $500 limit on gross income sales is too low; others

said it was too high. However, this limit on gross

income is set in the AWA itself, not in our regulations.

Therefore, APHIS is unable to make any changes to

this provision.

Q. Will APHIS monitor the implementation of this

rule?

A. APHIS seeks to protect these animals while also

implementing the rule effectively and fairly. We

will carefully monitor these efforts and are open to
feedback.
American Kennel Club response can be found here:
http://images.akc.org/governmentrelations/documents/pdf/AKCcommentsAPHIS.pdf

source of APHIS Q and A found here:
http://www.aphis.usda.gov/publications/animal_welfare/2013/faq_retail_pets_final_rule.pdf

UPDATE FROM AKC:

Disappointing USDA Rule Change For Breeders

“We are dismayed by the rule. It is overly broad and will do more damage than good. The federal government has missed an opportunity to introduce a smarter, more effective rule to deter unscrupulous breeders and sellers by imposing a regulation based on the number of dogs sold, not the number of dogs a person owns,” said AKC spokesperson Lisa Peterson.

Today, the United States Department of Agriculture Animal and Plant Health Inspection Service (USDA APHIS) released a finalized version of new federal regulations that narrow the definition of a “retail pet store” with the purpose of bringing internet-based pet breeders and sellers under the regulation of the Animal Welfare Act (AWA). The rule, originally proposed in May 2012 and essentially unchanged, effectively expands USDA oversight of pet breeders to include people who maintain more than four “breeding females” of any species and sell even one pet “sight unseen”.

The American Kennel Club (AKC) shares the USDA’s concern about unscrupulous and potentially substandard puppy sellers; and encourages responsible puppy buyers to meet the breeders of their new puppy and to work with responsible breeders to understand the commitment, challenges and requirements that a puppy of their chosen breed requires.

The AKC, however, is extremely disappointed that USDA APHIS, by adopting the rule in the same form it was originally proposed, did not heed the comments of hundreds of thousands of responsible dog breeders and owners concerned with the complexity and ambiguity of this potentially onerous new rule. Specifically, the rule will:

Increase the “retail pet store” exemption to include those maintaining 4 or fewer breeding females. Those with four or fewer “breeding females” will not be subject to USDA licensure and inspection. The AKC appreciates the intent of a continued exemption for small hobby breeders.

Deems any “sight-unseen” sale a covered activity, making the seller subject to USDA licensure and regulation. The AKC remains steadfast in believing that the rule will unreasonably require regulatory compliance of many more individuals than originally intended by treating those who sell a dog “sight unseen”—perhaps due to repeat buyers or other known purchasers—in the same manner as commercial internet-based sellers. The AKC believes that reasonable regulation of true commercial breeding enterprises or Internet sellers, where regulation is based on the actual numbers of dogs sold, is a better alternative to regulation based on the number of dogs a person owns. If the goal is to regulate internet sales, then such sales should be defined to include only internet sales. If the goal is to regulate all commercial breeder/retailers, a better definition for this call would be those who produce and sell more than 50 puppies in a year.

Vague definition of “breeding female” as one having the capability of breeding. Currently, the USDA defines “breeding female” as “capacity to breed” and bases this assessment on a visual inspection on the ground of the animals involved, determining whether they are “of breeding age” and whether there are health or other factors that would limit that. The AKC believes that this is not a practical, efficient, or clear way to establish a threshold for licensing and regulation, as it does not allow either APHIS or a breeder to assess whether a seller would be subject to licensing, regulation, and inspection without first being inspected by APHIS. The AKC remains extremely concerned that the rule will make it difficult for individuals to self-report, as they would not be able to know—without an APHIS inspection and examination of their animals before applying for a license—whether they would be required to obtain a license.

Operational standards originally designed for commercial-type facilities fail to account for circumstances appropriate for how hobby/fancy breeders who will be subject to the regulations will keep their dogs. As a result of AKC’s long history and breadth of experience in advancing the care and conditions of dogs and conducting kennel inspections, we know that there are a wide variety of circumstances and kinds of facilities in which dogs may be suitably raised and maintained. AKC’s Care and Conditions policy is based on performance standards, rather than strict engineering requirements. This is because many breeds would fail to thrive in the required commercial kennel setting and, therefore, are better raised in residential settings. It is not reasonable to expect small breeders, who keep a handful of dogs and make a choice to raise dogs in their homes, to be able to meet exacting USDA kennel engineering standards that are designed for large commercial wholesale or research kennels. Likewise, many could be prevented from adapting their facilities because of local ordinances, zoning limitations, restrictions on their ability to obtain business licenses or necessary insurance. We believe performance-based standards are a better option for small home-based operations. The AKC believes that the continued effort to subject small home-based breeding operations to the same exacting standards required of purely commercial facilities is unreasonable and unnecessary.

To learn more about our specific concerns with the rule, please visit AKC’s USDA Regulatory Resources Page.

NEXT STEPS:

USDA APHIS expects the final rule to be published in the Federal Register later this week. The rule will become effective 60 days after publication.

The AKC is dedicated to supporting the wellbeing of all dogs and responsible dog owners and breeders. We are extremely disappointed with the content of the final rule and we will continue to study this rule and assess all options for addressing our ongoing concerns.

The AKC will continue to provide additional information and analysis regarding specific impacts and what this rule may mean to responsible dog owners, breeders and the dog-loving public in general. Please remember that as a matter of company policy, the American Kennel Club does not release the registration information or history of any customer without a court order. The AKC, however, does expect individuals to comply with all applicable federal, state, and local laws and regulations regarding the ownership and maintenance of dogs

Dog Blog

Tuesday, September 24, 2013

2013 MASTER NATIONAL'S

Friday, September 13, 2013

NEW USDA/ APHIS REGULATION'S FOR BREEDER'S

Disappointing USDA Rule Change For Breeders