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This was a possibly fictitious device mentioned by Caractacus Burke to Albus Dumbledore years ago. When thinking that Merope's claim that she had Salazar Slytherin's locket was ludicrous, he brought up someone saying "Oh, this was Merlin's, this was his favourite teapot." This was a reference to the usually highly exaggerated claims people made regarding the objects they brought to the store. 
- Harry Potter and the Half-Blood Prince (First mentioned)