Thanks to Michael Quinion and World Wide Words for this one:
In 1991, an Australian patented a folding bottle which he called a "fottle". That much is true, the rest probably isn't:
The patents clerk said the name didn't sound very good; he should think of another.
"I've also designed a folding carton I call a farton," said the inventor.
"You couldn't call it that; it sounds rude," said the clerk.
"You won't like my folding bucket then!"