‘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

Alison Rey, Alexis Malone Lead Latest From Swappz

Alison Rey and Alexis Malone star in the latest release from Swappz's "MomSwap" series, titled “Four-Way 69 — The Hunting Moms.”

Abigaiil Morris Stars in Latest From Brazzers

Abigaiil Morris stars with Danny D in the latest release from Brazzers, titled "Cooking With Abigaiil."

Barbie Rous Is Hustler's 'Cover Honey' for April

Barbie Rous is the Cover Honey for the April issue of Hustler Magazine and appears in a 12-page centerfold spread shot by Davide Esposito.

Lovita Fate Returns to Immoral Productions

Lovita Fate stars in the latest trilogy from Immoral Productions, alongside Devils Kos, Terry Banks, and studio honcho “Porno Dan” Leal.

Andi Avalon, Emma Rosie Front Latest From Girlsway

Andi Avalon and Emma Rosie star in the latest Girlsway release, titled “Her Favorite Dessert.”

Performer/Creator Seth Peterson Passes Away at 28

Performer and creator Seth Peterson passed away on Saturday, according to his fiancé and best friend, Kobe Marsh. Peterson was 28.

Alina Lopez on Finding the Blueprint for XMA Gold

“This year, I’ve already traveled out of the country, gone to two major award shows and bought a new house,” Alina Lopez tells XBIZ, offering a sigh of exhaustion. “And February’s not even over.”

Avery Lust Leads New Scene from Grooby

Avery Lust stars in the latest release from Grooby Girls, titled “In the Wild.”

Avery Lust, Kasey Kei & Nicole Vaunt Headline 'TS Adventures 2' From TransSensual

Avery Lust, Kasey Kei, and Nicole Vaunt topline “TS Adventures 2” from Mile High Media studio imprint TransSensual.

Evil Angel Debuts Sabien DeMonia's 'Polish Fuck Machine'

Evil Angel has released the latest directorial title from reigning Euro XMAs MILF Performer of the Year Sabien DeMonia, “Polish Fuck Machine.”

Show More