Final answer:
Per FTC guidelines, an ad may use a color picture with the disclaimer "vehicle colors may vary" but cannot make misleading factual claims. Ambiguous or untrue statements and changing a statement's meaning with an asterisk are not allowed in advertising. The principle 'Caveat emptor' advises consumers to be vigilant.
Step-by-step explanation:
In regard to the permissible manners of advertising, the Federal Trade Commission (FTC) has established guidelines that affect how a dealer may advertise. Specifically, any claim presented in an ad as a fact must be true. Therefore, an ad may use a color picture with the disclaimer "vehicle colors may vary" to indicate that the actual vehicle's color might be different.
This would be an example of acceptable advertising that does not make a false factual claim. On the contrary, using an asterisk to change the meaning of a statement, using unclear qualifications, or misleadingly employing the term "wholesale" in a retail context would not be compliant with FTC rules. Companies should aim for truthfulness in their advertising, while also being aware of the principle of 'Caveat emptor,' meaning "let the buyer beware," which reminds consumers to scrutinize advertising claims.
In advertising, it is important for dealers to be transparent and provide accurate information to consumers. Advertising using a color picture that is not the same as the actual product can be misleading, even if a disclosure is included. The Federal Trade Commission (FTC) regulates advertising practices and requires that claims presented as facts must be true.