Final answer:
REALTORS® are required to present a true picture in their representations, aligning with the principle of 'caveat emptor' and FTC regulations that allow for exaggerated or ambiguous claims but not false ones in advertising. This principle underscores the importance of consumer due diligence and the ethical responsibility of truthful representation in real estate.
Step-by-step explanation:
The Code requires REALTORS® to present a true picture in all of their representations, which is a standard that aims to promote honesty and integrity in real estate transactions. This ethical obligation reflects the broader practices within advertising and commercial dealings, where misleading representations can lead to consumer mistrust and legal issues. In the context of real estate, this might mean that photographs of houses for sale should show an accurate depiction of the property without hiding undesirable features such as a nearby landfill or factory, even if these may be inferred from a lower selling price or discovered upon inspection. Such practices align with the principle of caveat emptor, or 'let the buyer beware', which underscores the importance of due diligence on the part of the consumer while also placing a responsibility on sellers and advertisers to be truthful. The Federal Trade Commission (FTC) plays a role in checking factual claims to prevent false advertising, although they do permit language and images that are exaggerated or ambiguous, as long as they are not outright false.