Final answer:
Licensees must disclose material facts to their clients, adhering to principles of truthful advertising and the legal doctrine of 'Caveat emptor,' under oversight from the FTC.
Step-by-step explanation:
It is indeed the licensee's duty to ensure that material facts are known to their client, especially within a business context. This duty aligns with the legal standards for truthful advertising and the principle of Caveat emptor—let the buyer beware. The Federal Trade Commission (FTC) plays a significant role in checking factual claims about products' performance. However, licensees must disclose material facts to avoid misinformation, which could lead to legal consequences such as claims of fraud. Furthermore, laws often require businesses to disclose certain information, such as nutritional content on food and warning labels on tobacco products, ensuring that advertisements are not misleading or constitute fraud.
It is a fundamental aspect of a licensee's duty to ensure that material facts are known to their client. This commitment to transparency and full disclosure is essential in maintaining the trust and integrity of the client-agent relationship in the real estate industry.