Jessica, I have seen "dyed" chicks at easter time. (Bright greens, blues, purples).....is that illegal too?? Maybe since it is their baby down feathers that they will quickly replace with real feathers, it is OK. Maybe it is food coloring type dye??
I saw something on one of those animal cop shows about dying chicks... one of the biggest problems with it is that it makes stupid people buy the chicks because they're so tiny and cute and a pretty color! so they bring them home for their kids like a toy and then they grow into chickens and they don't know what to do with it. It's sad