Final answer:
The statement that a licensee should discourage clients from having exaggerated or false ideas about their services is true, aligning with FTC standards and the principle of caveat emptor.
Step-by-step explanation:
The statement "A licensee shall discourage a client from holding exaggerated or false ideas about the licensees professional services" is true. In the context of advertising and professional conduct, it is important that clients have a realistic understanding of what services or products can actually provide. The Federal Trade Commission (FTC) actively checks for factual accuracy in advertising to prevent deceptive practices.
As a licensee, maintaining honesty and managing client expectations are not only ethical practices but also align with regulatory standards. Therefore, discouraging exaggerated or false ideas protects clients from potential disappointment or harm, following the principle of caveat emptor – let the buyer beware.