Because it’s a lot cheaper to wipe them out on sight
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I’m of the opinion most new owners are fed into the myth that mares are only happy if they can have foals and most people won’t buy a “sad” sterilized fluffy if a feral has working sex organs to make babies. Its the same as people today that still believe retarded myths like snakes being slimy.
Obviously Fluffmarts give the bob barker routine but there’s only so much they can do short of sterilizing fluffies and losing out on sales.
I think the owners that do chose to sterilize fluffies are ones who already went through the nightmare of potty training a litter and then finding out none of their friends or neighbors wanted to adopt the foals and could only take a kill shelter to take them all and had to make up an excuse to Princess why she can’t go visit her kids because they all got taken to the back room of the shelter and beaten to death with a hammer as soon as you left.
Or the ones that fall for the gentle parenting meme that “If they can talk, they can understand reason and will obey rules that are clearly explained to them.” and decide that, like pastor dan says, telling a fluffy not to fuck is as effective as birth control.
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All a part of Black Rock’s plan. All heil new world order.
The old community lore mainly came down to this. Humans are awful and don’t take responsibility which is why there are so many unfixed fluffies.
The old lore as well is that if they were fixed as foals. They never knew what they were missing and would never have a sex drive. Hasbio intended to ship every fluffy out of their facility as fixed so any going to FluffMart or direct sales to customers would be fixed on site. But because Hasbio had also designed them to be breeders with a high breeding drive once they got past puberty. As they would be kept in the facility by Hasbio purely as a breeder and never leave the facility (Before the Fluffies got out and undid Hasbio’s plans). Any unfixed past puberty can’t be spayed/neutered or else they go into a deep, unfixible depression because they know what they are missing and will be depressed they can’t have foals.
I can’t remember the exact story but I think it was Swindle doing a vet story who had a really lovely take on it that fixing foals was actually really simple and cheap. Painless for a colt (If I remember right it was just putting numbing agent on the area, slicing it open and removing the testicles while keeping the colt distracted by talking about their favorite things) and mildly uncomfortable for a filly (A liquid nitrogen swab that was inserted in that would spread on the uterus and destroy it). But humans were just lazy and uncaring and would just never fix their fluffies no matter how cheap and accessible it was.
As to why the government never mandated it. To many industries relied on breeding fluffies post-Hasbio who successfully lobbied the government to let them breed themselves. Plus Ferals were never going to be crop ruining pests because of how easily fluffies died so they let the money talk.
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Or, for that matter, a large number of people wanting to torture sapient creatures. The whole point of the community here is it’s different on this side of the fourth wall and anyone who would actually torture what is effectively a child would be kicked and reported immediately, right?
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I know in some stories a fluffy needs to be registered but very few have mandatory sterilization, which is what I would expect from official HasBio stores that don’t want “free” product on the street.
Post-PETA release HasBio is nowhere near the financial juggernaut they were before. They don’t have much influence anymore.
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For the same reason Batman doesn’t just shoot the Joker. Because then the credits would roll and it would be a shitty story. Where’s the fun in that?
Also, that’s a pretty facist move. Fluffy owners and their pets would revolt and overthrow the government lol 
Good story idea!
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Since the Fluffy universe lacks consistent head canons, I’ve seen plenty of stories where the rules go every which way- super hugboxy where fluffies have human rights and so sterilization is right out, all the way towards where owning or feeding a fluffy is enough to get you or your family a hefty fine and mandatory euthanization of said fluffy ( or in one story which I wish I could remember, the fluffy being taken away and butchered for meat, which was then given to the same family as part of their government rations… ).
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