All puppies should be microchipped and new owners should insist on seeing them with their mothers as part of efforts to crackdown on bad breeding practices including dog "farming", a report recommended.
The independent inquiry by Professor Sir Patrick Bateson called for changes in the law to include a requirement for all puppies to be microchipped before sale, which could help trace bad breeders.
And he called for changes in the Dangerous Dogs Act - which only focuses on certain breeds - to allow authorities to take action on all dangerous individual animals to stop dogs being bred and reared as "weapons".
The inquiry, funded by the Kennel Club and the Dogs Trust, looked at the issue of dog breeding in the wake of a BBC documentary which claimed pedigree dogs bred for shows were suffering a high degree of genetic illness.
Prof Bateson said inbreeding in pure breeds, breeding dogs for specific looks or extreme characteristics such as wrinkly skin and negligent management of "puppy farms" were all major welfare issues for dogs.
He warned that inbreeding among pedigree animals led to inherited diseases, made it harder for them to reproduce and lowered their immune system - making it more likely they would develop diseases such as cancer.
His inquiry called for a non-statutory advisory council on dog breeding which would look at the problems of inherited diseases and inbreeding, and produce advice on breeding strategies and priorities for scientific research. The study also said a computer system should be developed to collect anonymous diagnoses of inherited diseases from vet surgeries to see how prevalent different conditions were in various breeds.
The report urged changes in the law to make microchipping all new puppies a requirement under the Animal Welfare Act and to bring in a statutory code of practice for breeders.
And Prof Bateson called for a more robust "accredited breeder scheme", which Crufts organisers the Kennel Club already runs, under which breeders have to run tests on parent dogs to make sure their offspring will not be at risk of inherited diseases.
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The accredited breeder scheme would also enable prospective owners to view their new dog with its mother before buying. Prof Bateson said there should be a public awareness programme - which he suggested could be fronted by a celebrity such as Joanna Lumley - to help the six million dog-owning households in the UK use their purchasing power to improve welfare for dogs.
