Final answer:
Advertisements must adhere to FTC regulations, allowing some exaggeration but prohibiting untrue material facts. The principle of 'Caveat emptor' advises consumer caution. Misleading statements can constitute fraud and are illegal.
Step-by-step explanation:
The question pertains to what is generally allowed to be included in advertisements. It's important to highlight that advertising regulations, enforced by the Federal Trade Commission (FTC), allow for a degree of creative exaggeration in advertisements. This implies that certain exaggerations or puffery may be present, especially when it comes to the general delight of using a product. However, these regulations are clear that when a claim is made as a factual statement, it must be truthful and verifiable.
Directly answering the question, an advertisement is not permitted to include untrue statements of material fact or any assertions that are misleading or false. The principle of Caveat emptor—which means "let the buyer beware"—still applies, advising consumers to approach advertisements with skepticism and do their due diligence before making purchasing decisions. The legal infrastructure around advertisements aims to protect consumers from fraud and ensure a standard of honesty in commercial communications.