Dogs can see color, but they don’t see colors the way you and I do. They are color blind somewhat, but they are able to differentiate between many different colors.
The main cells in the eyes responsible for seeing color are called cones, and dogs have fewer of these cones resulting in poorer quality color vision.
So while they may see colors, it is just not as vivid as we see the colors.
According to one researcher from University of California at Santa Barbara , Jay Neitz, dogs do see color but they see fewer colors.
One example he gives of how dogs see colors is with a rainbow example. Instead of seeing purple, blue, baby blue, green, yellow, orange, and red. Dogs would see blue, lighter blue, white, tan, and brown.
As you can see dogs do not really see the color red, which happens to be the color that most dog toys are.
So if you wanted to make a dog toy in the color that dogs see, the best color would be a darker blue collar not red at all.