Wonder Bread contained extra calcium, it would help children’s minds work better and improve their memory. The

FTC objected, and in 2002 the company agreed to stop running the advertisements.

As we can see in each of these cases, the Federal Trade Commission (FTC) often checks factual claims about the

product’s performance, at least to some extent. Language and images that are exaggerated or ambiguous, but not

actually false, are allowed in advertising. Untrue “facts” are not permitted. In any case, an old Latin saying applies

when watching advertisements: Caveat emptor—that is, “let the buyer beware.”

On the buyer’s side of the labor market, a standard precaution against hiring a “lemon” of an employee is to

specify that the first few months of employment are officially a trial or probationary period, and that the

employer can dismiss the worker for any reason or no reason during that time. Sometimes workers also

receive lower pay during this trial period.
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