Issues with Phantom Poodles
Before 2005, in Germany (a country in which the Poodle is highly popular), phantoms were only allowed to be bred with other phantom Poodles. Whenever an apricot Poodle puppy was born, the German Poodle Club did not allow that pup to bred. These rules caused too much inline breeding to be done.
Inline breeding is the pairing of dogs who are very closely related, such as father to daughter and is considered unethical by most reputable breeders in the U.S.
The inline breeding caused bloodlines to develop too long of a lower jaw, overbites, incorrect number of teeth, and premature color fading. This led to a drastic & needed change that allowed Phantoms to be mated with black or apricot Poodles. This is slowly, yet steadily, decreasing the above stated flaws.
Currently, the AKC does not recognize Phantom Poodles in Conformation events, but does allow them to participate in Agility and Obedience.