Final answer:
An ad must trigger full disclosure of loan terms if it specifies certain loan-related details like interest rates or monthly payments. The FTC oversees the truthfulness of such claims, but consumers must also remain vigilant ('Caveat emptor'). The necessity of disclosure extends beyond advertising to areas such as political contributions.
Step-by-step explanation:
An ad used a term that triggered full disclosure of loan terms when it contains specific claims about the cost or terms of the loan, such as '0% interest' or a specific low monthly payment. According to the Federal Trade Commission (FTC), any factual claims in advertisements must be accurate. This ensures that exaggerated or ambiguous language does not mislead consumers. However, it's important for consumers to abide by the adage 'Caveat emptor' or 'let the buyer beware' since not all implications in advertisements require the same level of scrutiny, and can still lead to misunderstandings or unrealistic expectations.
For example, when an advertisement for a real estate loan suggests an introductory rate or specific terms, it must include all relevant terms and conditions, such as the potential for a rate increase in an adjustable-rate mortgage (ARM). President Barack Obama's 2010 effort aimed at requiring disclosure statements for political contributions highlights the importance of transparency in both financial and political spheres.