Final answer:
A company is likely to violate 'truth in advertising' when it marks an item up before claiming it is on sale, as it can mislead consumers which is against the FTC regulations.
Step-by-step explanation:
When a company says that an item is on sale after marking the item up, it is likely to have violated its 'truth in advertising', because many societies believe that it is wrong to mislead people. Factual claims made by a company in their advertising are subject to review by the Federal Trade Commission (FTC), which prohibits false or misleading statements that can constitute fraud. When companies advertise, exaggerated or ambiguous language and images that are not actually false may be allowed, but untrue "facts" are not. The legal framework is there to prevent companies from misleading consumers and to enforce consumer rights. The principle of 'Caveat emptor' - let the buyer beware, while still relevant, is complemented by regulations that demand the truthfulness of advertising to ensure consumers are not deceived.