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So, the image is fake, but the product exists. Also, Kmart does sell a few sex toys. So, the only lie here is that Kmart sells this particular sex toy, as it does not.
Many years ago, before Walgreens started selling sex toys in store, I bought a hitachi magic wand from them. (This was before their mainstream adoption as a sex toy, and they were not labeled as such on their site. They were significantly cheaper there than at places selling them as sex toys.)
But to your point - many believable lies contain plausible truths.