I think it's not cruel if you're going to dress up your dog just for a short period of time, let's say for a couple of minutes, for a photo shoot. But to let him stay in those clothes the whole day -- that is cruel. They would get all uncomfortable and it would actually show. They would flinch as if to let you know what they are actually feeling. Unless it's winter, try not to dress them up for a long time.
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