Some unlicensed breeders (see below for examples) can still legally sell animals. While a license can provide a layer of accountability, it doesn’t guarantee humane treatment. Likewise, an exemption doesn’t automatically mean animals are being mistreated. Sometimes these exemptions can be legal loopholes.
*Check your state’s laws to see if they provide oversight where federal regulations fall short.
Who: Hobby Breeders
Breeders with 4 or fewer breeding females
Why: If they only sell offspring born and raised on their premises, and only in-person, they’re considered “retail pet stores” and exempt.
Advocacy Concerns:
These breeders sell without USDA inspections. There is no federal tracking of how many animals they produce unless the specific state law says otherwise.
Pet stores/online sellers can legally source from hobby breeders with no oversight and no obligation to tell the customer, unless their state law says otherwise.
Even when a state requires disclosure, the breeder might claim hobby status to avoid licensing, and that can make enforcement difficult.
Allows puppy mills to disguise themselves as small breeders or use unlicensed middlemen.
Who: Retail Pet Sellers (Face-to-Face Sales Only)
Individuals or facilities that only sell pets in person, directly to the buyer
Why: Considered “retail pet stores” under the AWA and not regulated by the USDA, regardless of how many animals they sell. But if they own 4+ breeding females, they must be licensed.
Advocacy Concerns:
Exemption covers in-person farm or home sales, but allows loopholes in enforcement when sellers falsely claim face-to-face sales to avoid licensing.
Some states have laws that require the pet store to disclose the USDA license number and/or the breeder’s name and address.
If the state doesn’t have its own laws regarding retail pet stores, then there is no oversight or regulation protecting the animals.
Who: Transport only Broker
Coordinates logistics (e.g., hires a transport company or schedules shipments)
Why: Because they never physically handle the animals, they fall outside USDA licensing requirements as a “dealer.”
Advocacy Concerns:
Some states have laws that require more transparency to find the connections between the breeder and the consumer. Check your state laws.
It is hard to trace how many other people and animals the dog came in contact with between the breeder and consumer.
Puppy mills may use unregulated brokers to avoid being directly linked to pet stores.
Who: Private Rescues and Shelters
Non-government, non-commercial animal shelters and rescues
Why: If they do not breed or sell for profit. The AWA does not regulate non-commercial rescue activities.
Advocacy Concerns:
Some states have laws that require shelters and rescues to be licensed. Check your state laws.
Most people don’t check the status of the nonprofit on the IRS website or look at the 990’s for red flags. More on that here.
Some rescues state that they are “pulling dogs from [insert state]” but could be buying from breeders to sell for profit.
Bottom Line
Does the seller have a lot of puppies listed under a hobby breeder? If so, why? Ask the seller for the breeder’s name and address so you can visit their property (not meet at a separate location). Ethical breeders and sellers have nothing to hide so they won’t try and dodge questions and visits.