Final answer:
The exception to the disclosure requirement in the Truth-In-Lending Act, when trigger terms are used in an advertisement, is the explicit mention of the interest rate. Advertisements must include the APR, finance charge, and amount financed but may exclude the interest rate because it is often part of the APR.
Step-by-step explanation:
According to the Truth-In-Lending Act, when an advertisement includes certain trigger terms, full disclosure of specific credit terms must be provided. These terms can include aspects such as down payment, number of payments, the period of repayment, and the amount of any payment. However, the exception to this full disclosure requirement, when trigger terms are used, is the interest rate.
While an advertisement must include the Annual Percentage Rate (APR), finance charge, and amount financed if trigger terms are stated, it does not need to disclose the interest rate explicitly, as this may often be incorporated within the APR. The APR is a broader measure that reflects the cost of credit as a yearly rate, which includes not just interest, but other charges as well.
Keep in mind the essential notion of caveat emptor, meaning 'let the buyer beware,' which emphasizes the need for consumers to carefully consider advertising claims. The FTC allows a certain amount of exaggeration in advertising but enforces the accuracy of factual claims. This standard is consistent with ensuring that lenders provide clear and accurate information regarding the credit terms when using trigger terms in their advertisements.