Pet Sales

In 2015, New York City enacted a group of laws aimed at dealing with problems associated with the companion animal business in the city by regulating the sale of dogs and cats in pet shops. On the day the laws were to go into effect, the New York Pet Welfare Association (NYPWA) filed suit challenging two of the laws. The first law, the “Sourcing Law,” required that pet shops sell only animals acquired from breeders holding a Class A license issued under the federal Animal Welfare Act (AWA). The second law law, the “Spay/Neuter Law,” required that pet shops sterilize each animal before releasing it to a consumer. NYPWA argued that the Sourcing Law violated the “dormant” Commerce Clause and is preempted by the AWA, and that the Spay/Neuter Law is preempted by New York law. The district court dismissed NYPWA’s complaint and the 2nd Circuit Court of Appeals affirmed the district court’s decision. First, the 2nd Circuit determined that the Sourcing Law did not violate the Commerce Clause because it did not discriminate against interstate commerce. The 2nd Circuit found that the Sourcing Law may make it difficult for certain out of state breeders to sell to city shops, but so long as breeders from other states are allowed to sell in the city, then it is not considered to be discriminatory. Also, the 2nd Circuit found that NYPWA was unable to show that any incidental burden that the Sourcing Law placed on out of state breeders was excessive and therefore the law passed under the Pike Balancing test. Lastly, the 2nd Circuit determined that the Spay/Neuter Law was not preempted by New York Law because NYPWA failed to identify a single New York statute or case that suggests that the new law would be preempted in any way. As a result, the 2nd Circuit affirmed the district court’s ruling.

(Aff'd on appeal to 2nd Circuit: New York Pet Welfare Association, Inc. v. City of New York, 850 F.3d 79 (2d Cir. 2017). Plaintiffs, a non-profit group trade association of pet stores ("NYPWA"), dog and cat breeders and dealers, veterinarians, and pet owners, brought this action against New York City, the city council, and council members, alleging that defendants have adopted laws that violate the Supremacy Clause, the Commerce Clause, the Equal Protection Clause, and the Due Process Clause of the U.S. Constitution, as well as New York law that governs veterinary medicine, the treatment of animals, and equal protection. The challenged law relate to the sale of dogs and cats in the city that require pet stores to obtain pets from Class A USDA licensees in good standing and that the pet stores spay and neuter the pets before selling them. In rejecting NYPWA's federal preemption claim, the court found that the AWA specifically contemplates local regulation in § 2143(a)(8) and previous cases have found no conflict even where the local legislation bans what is otherwise allowed under the AWA. The court also found no conflict with state law (N.Y. Gen. Bus. § 753–d) or other laws concerning veterinary licensing, pet shops, and animal cruelty. In dismissing plaintiff's Equal Protection argument, the court was not persuaded that pet stores and shelters/rescues are "similarly situated" to support the claim. Additionally, the court found a rational basis to support any differential treatment. NYPWA also alleged that the Pet Shop Laws violate the dormant Commerce Clause, arguing that the laws impermissibly regulate extraterritorially and favor local interests. The court found that even if plaintiff's factual allegations were true, the law was not economic protectionism, but an attempt to curb problems with homeless animals and euthanasia. Finally, the court found not due process violations (substantive or procedural) where there is no interference with a constitutionally protected right. NYPWA's motion to dismiss the claims is granted and the motion for preliminary injunction was denied.