I met bad dog.
I’m not sure if it’s bad meaning bad or bad meaning good, but judging from the CAPITAL RED letters, I fear it’s the former. You see, bad dog isn’t all that bad. He’s just a little confused. You told him “you’re bad!” and he believed you. You told him “eres igualito a el!” (as you pointed at the sign) and he believed you.
I told him the truth. He’s doing OK now. Actually, he’s quite relieved.
He’s no longer happy being bad.