Supply Chain History
The Class B Dealer Era
Class B dealers were the middlemen of the random-source supply chain. In USDA regulatory language, “random source” meant dogs obtained from pounds, shelters, auctions, or anyone who did not breed and raise the animals on their premises. Class B dealers could legally acquire dogs from pounds/shelters, individuals (including hobby breeders), and other licensees.
The system was plagued by documented fraud and abuse. Barbara Ruggiero and associates were convicted in California for stealing pets to sell for medical research. C.C. Baird Jr. in Arkansas was sentenced for money laundering tied to dog/cat sales to research facilities and falsifying acquisition records. A USDA Inspector General audit found systemic enforcement weaknesses including inadequate inspections and follow-through against problematic dealers.
National Academies data for 2007-2008 showed Class B dogs represented only ~4% of dogs used in research (2,863 Class B dogs vs. 72,037 total). The GAO reported a similar ~3% figure. But for the peak era of the 1970s-80s, no precise Class A vs. Class B ratio exists — USDA did not maintain year-by-year splits for much of the period. What is known: ~200 Class B dealers operated at peak, and the supply was substantial.