Unregistered dog breeders are being given six weeks to get a licence without the threat of prosecution. The Middlesbrough Council amnesty was prompted by concerns that bitches are being bred for profit at the expense of their health and welfare.
Breeders have until 1 January to get a licence or face up to three months in prison or a �2,500 fine.
For the past 12 months the council, working with the Kennel Club, has been gathering information on breeders.
Councillor Barry Coppinger, executive member for community safety and leisure, said: "The law requires that anyone who breeds dogs as a business has a licence from the council, so the welfare of the animals can be protected.
"We are giving dog breeders six weeks to make sure that their paperwork is up to scratch. After then our officers will be enforcing the rules fairly but robustly."
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