Final answer:
Under the Truth-in-Lending Act, it is permissible to advertise general statements such as "loans available" without providing additional terms. Specific credit term advertisements must include full disclosure, and the FTC ensures all factual claims made in advertisements are true.
Step-by-step explanation:
The Truth-in-Lending Act requires that any advertising which includes credit terms, such as the charge for credit, must disclose certain terms of the loan. This is meant to ensure consumers are provided with truthful and meaningful information regarding credit costs.
However, there are certain general statements that can be made without triggering additional disclosures. For example, one can advertise statements like "loans available" or "financing available" without providing specific terms. When it comes to detailed claims about the product or benefits related to financing, the Federal Trade Commission (FTC) mandates that these claims must be factual.
To answer the student's question, under the Truth-in-Lending Act, it is not permissible to advertise detailed credit terms unless other key terms are also disclosed. General statements that do not mention specific credit terms could be permissible to advertise alone. Advertisers must not make untrue factual claims about credit terms or the benefits of a product, as the FTC checks these claims for accuracy.