Nevada Timeshare License Practice Exam

Which of the following practices is deemed deceptive by the Federal Trade Commission?

1. Providing full disclosure in advertising

2. Offering legitimate bonuses or incentives

3. Exaggerating resort features

4. Utilizing clear and honest marketing tactics

The correct answer is: Exaggerating resort features

Exaggerating resort features is considered deceptive by the Federal Trade Commission because it misleads potential customers about the actual benefits and amenities of a timeshare property. Accurate and truthful representation of a product is crucial in advertising, particularly in the real estate sector, where significant financial commitments are involved. When businesses overstate or embellish aspects of their offerings, they create a false impression that can lead clients to make uninformed decisions based on inflated expectations. The FTC aims to protect consumers from such misleading practices, emphasizing the importance of honesty and transparency in marketing. Therefore, exaggerating any features is clearly against ethical advertising standards and can lead to regulatory action.