You can't blame an organization for the short comings of breeders/members.
AKC is a registering body and they offer many different events aside from dog shows organizer.
Breeders are the controlling aspect of what happens beyond that.
I find it hard to blame an organization for the screw ups of some people who use what is offered anymore then blaming the health dept for puppy mills.
Rules and regulations will only control the people who abide by them. No more, no less!
I think you all might find the new book by Ted Kerasote, "Pukka's Promise" very interesting. I'm only on chapter 5 so far (it just came out last week), but Ted writes about some very interesting things relating to the AKC, UKC and the equivalent organizations in Europe.
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