‘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

Dorcel Drops Franck Vicomte's 'Our First Orgy'

Dorcel has released director Franck Vicomte's latest feature, "Our First Orgy."

Khloe Kapri Headlines 'After Hours' From Sweet Sinner

Khloe Kapri toplines "After Hours," the latest release from Mile High Media studio imprint Sweet Sinner.

Angela White Stars in Jonni Darkko Blowbang Release

Multi-XMAs winner Angela White stars in a new blowbang release from Evil Angel, directed by Jonni Darkko.

Violet Voss Makes Her Deeper Debut

Violet Voss has made her debut for Vixen Media Group studio imprint Deeper alongside Alex Jones in the studio's latest release, titled "Absolution."

Kayden Kross Explores the Divine Side of Desire in 'Equilibrium'

For as long as humans have told stories, goddesses have embodied our fascination with desire, temptation and pleasure. Kayden Kross taps into that ancient fascination in "Equilibrium," her five-part fantasy feature for Deeper, where desire exists on two planes. On the surface, pleasure collides with duty, appearances and expectations. But beneath it lies an underworld of the psyche, where desire takes physical form and characters confront the parts of themselves they would rather keep buried.

'Heaven & Hell' Industry Bash Set for Oct. 30 in Hollywood

The annual Heaven & Hell adult industry Halloween party will take place Friday, Oct. 30, at Jungle in Hollywood.

German High Court Puts Pornhub, YouPorn 'Network Ban' on Hold

A German high court on Friday temporarily barred a state media regulator from ordering internet providers to cut off access to Aylo-owned adult sites Pornhub and YouPorn in Germany, pending further action by Cypriot and European Union authorities.

VMG Debuts New Series 'WIFEY Vacay'

Vixen Media Group studio imprint WIFEY has premiered its international series "WIFEY Vacay."

Lilly Bell, Gypsy Rose Lead Latest From Digital Playground

XMA winner Lilly Bell stars with Gypsy Rose and Logan Xander in the latest release from Digital Playground, titled "The Hostages."

Juliana Marie, Hope Fontaine Star in Latest From TeamSkeet

Juliana Marie and Hope Fontaine star with Peter King in the latest installment of the TeamSkeet series "Brat Tamer."

Show More