The owners of Farfel's Farm have tried to keep their bearded collie from sleeping in the display of their pet boutique. But Farfel had other plans.

"Farfel just likes being next to the waterfall in the display," said owner Jeff Richey. "Originally we tried to get him away from there but we finally gave in and put a bed there for him."

Now, the federal government is saying that Richey must apply for a $40 commercial license for his pet because the dog is on display, like an animal at the zoo.

A representative from the Animal and Plant Health Inspection Service of the U.S. Department of Agriculture delivered the news to the store's owners last month.

"I couldn't believe it," Richey said. "Our whole business is about rescuing animals and promoting animal welfare."

At issue is the owner's use of the dog's name and image in its logo and advertising, as well as the dog's habit of spending time in the store's window. According to APHIS spokesman Dave Sacks, the store qualifies as an exhibitor under the Animal Welfare Act, which is designed to regulate animals that are commercialized to attract customers.

"By all accounts, the animal is being used as a draw for the business," Sacks said. "The dog stays at the front window, it's a draw for customers."

Richey said the dog only spends a fraction of his day at the front of the store, and does so by choice. Farfel spends the rest of the day behind the counter with the owner's seven other dogs.

Sacks said this is a unique case in that it involves a pet boutique as opposed to a zoo or circus, but said that the use of the animal is not fundamentally different.

"Zoos and circuses use animals for a profit and that's what he's doing here," he said.

The licensing application costs $40 and, if approved, Farfel's Farm will received a yearly unannounced visit by an APHIS inspector to ensure proper treatment of the animal. If the application is turned down or if the owners fail to apply, they will have to change their name, logo and advertising or face possible fines, according to Sacks.

"I've made such a fuss about this, I wouldn't be surprised if they turned me down," Richey said.

Richey said he is upset that APHIS, which also regulates commercial breeders, was willing to use its resources to deal with his store.

"I told them it's interesting that the same agency that claims it doesn't have the resources to monitor puppy mills more than once a year can afford to come down here and deal with our family dog," he said.

According to Sacks, APHIS is legally required to visit breeders once a year, but that it is not uncommon for inspectors to make multiple visits to a location if there are numerous violations or concerns. The news of the incident has spread throughout the Boulder pet-owner community.

Mary Lee Withers, who co-owns P.C.'s Pantry on 30th Street, said her customers have been talking about the case.

"The general reaction is 'why?'" she said. "Why are they going after this family dog? I've never heard of this happening to any other pet shop."

Withers said she knows of several other pet boutiques that use their animals' names and images and whose pets wander the stores.

"What do they expect?" she said. "That's what we are. We are a store for animals."

According to Sacks, the effectiveness of the Animal Welfare Act requires that the agency pursue all cases the same.

"The bottom line is that from the outside, it may look different than a zoo or a circus, but they are using animals in the same way, to drum up business," he said. "Whenever there is an animal that is being used to promote business, we will step in."