‘Grand Theft’ Settlement: Warning, Recall and Software Patch

SAN FRANCISCO — The makers of "Grand Theft Auto: San Andreas" agreed Thursday to settle Federal Trade Commission charges for failing to disclose that animated sex scenes were hidden in the game.

With the settlement, New York-based Take-Two Interactive Software Inc. and Rockstar Games Inc. face fines of up to $11,000 per violation if they violate the order, once it becomes final. The companies also must recall existing "Grand Theft Auto: San Andreas" games and offer a software patch.

The deal with regulators comes just one day after Congress gave overwhelming approval to legislation that will make broadcasters pay exponentially more for airing racy material that the Federal Communications Commission considers indecent. The measure, which awaits President Bush’s signature, would fine broadcasters $325,000 per incident, a tenfold increase.

Word of the settlement grew quickly during the first day of the two-day Sex in Video Games Conference in San Francisco, which was attended by nearly 150 adult and game industry representatives on Thursday.

Many of the attendees weren’t surprised about the settlement.

“The whole controversy was stupid; it was really bad porn, so God bless them for getting to that stage,” Dave Taylor, a game programmer at DDT, told XBIZ.

Brian Shuster, CEO of Utherverse, which offers the just-launched RedLight Center, a 3D “red-light district”-themed game, said all of the publicity surrounding the controversy worked economically well for the two companies.

“It was the greatest marketing move in the game industry,” Shuster told XBIZ. “Geez, how many times were they mentioned in the press?”

Take-Two’s best-selling "Grand Theft Auto: San Andreas" game included the sex scene known as "Hot Coffee," which could only be unlocked and viewed with a computer download and implementing “cheat codes” on PlayStation 2 and Xbox equipment.

Retailers that do not carry adult-rated games pulled the title from shelves, costing Take-Two millions of dollars and putting a chill on an industry accustomed to self-censorship. Later, the gaming industry’s ratings board slapped an "Adults Only 18+" label on “Grand Theft Auto: San Andreas.”

Take-Two claimed it incurred $24.5 million in costs associated with returns of the game, which generated $100 million in sales within its first month of release in October 2004.

With the FTC deal, company officials must properly notify consumers of racy content on future games. The companies also have released a patch that, if downloaded and installed on the game, disables the “Hot Coffee” program; the patch is available for download at www.nomorehotcoffee.com.

The companies also will be subject to compliance reporting requirements to ensure that they meet the terms of the order.

“Parents have the right to rely on the accuracy of the entertainment rating system,” said Lydia Parnes, director of the FTC’s Bureau of Consumer Protection. “We allege that Take-Two and Rockstar’s actions undermined the industry’s own rating system and deceived consumers. This is a matter of serious concern to the commission, and if they violate this order, they can be heavily fined.”

Copyright © 2026 Adnet Media. All Rights Reserved. XBIZ is a trademark of Adnet Media.
Reproduction in whole or in part in any form or medium without express written permission is prohibited.

More News

Ukrainian Legislators Revive Porn Decriminalization Push

The Verkhovna Rada, Ukraine’s parliament, is once again considering a bill that would decriminalize the creation and distribution of pornography in that country — an activity that currently carries a prison sentence of three to five years.

Charlotte Sins on Porn, Power and Freedom

Charlotte Sins is cracking the whip. Or at least, she’s pretending to. Standing over a masked submissive on the set of her X3 cover shoot in North Hollywood, she’s a glam femdom vision in stiletto heels and retro ’50s pinup black hair. Leather whip draped over her bare shoulders, its black tip dangling suggestively between her long, tan legs, Sins moans softly.

Armani Black to Star in Latest From Bellesa Plus

Armani Black stars in the latest installment of the Bellesa Plus reality series “The Bellesa Challenge.”

Ofcom Fines XGroovy $986,000 for AV Noncompliance

U.K. media regulator Ofcom on Thursday imposed a fine of 700,000 pounds (about $986,000) against adult website XGroovy for failing to comply with provisions of the Online Safety Act.

Millie Morgan Leads Latest From MILFY

Millie Morgan stars with Sky Wonderland and Dan Damage in the latest release from Vixen Media Group (VMG) studio imprint MILFY, titled “Sexy MILF Teaches Younger Hottie to Take Control.”

Anissa Kate Fronts Latest From MILFY

Anissa Kate stars with Goldey in the latest release from Vixen Media Group (VMG) studio imprint MILFY.

Suki Sin Stars in Latest From Family Strokes

Suki Sin stars with Rion King in the latest release from the Family Strokes series "PervMom."

Digital Playground Premieres Ricky Greenwood's Action Feature 'The Tribunal'

Digital Playground has dropped “The Tribunal,” a futuristic, dystopian action film from multi-XMAs winner Ricky Greenwood.

X3 Euro All-Stars Paint Amsterdam Red in Billboard Campaign

The X3 Expo Euro All-Stars are making a splash on the vibrant streets of Amsterdam as the creator-first fan event prepares to make its debut on the continent.

Kendra Sunderland, Alina Lopez Lead Latest From Vixen

Kendra Sunderland and Alina Lopez star with reigning and three-time XMAs Male Performer of the Year Vince Karter in the second installment of the Vixen showcase series “The Angel Anthology.”

Show More