FTC, Take-Two Settle Over 'Hot Coffee'
The Federal Trade Commission said that Take-Two Interactive, the maker of "Grand Theft Auto: San Andreas," had agreed to settle charges it failed to disclose information about the game's content to consumers. The commission approved the settlement by a 5-0 vote.
Take-Two was accused of not disclosing the sexually explicit content that was found in the Hot Coffee modification. Gamers were able to access the scenes in the PC version through a modification available on the Internet, and a method was discovered to unlock the scenes in Xbox and PlayStation 2 versions of the game as well.
The game was originally rated "M" for mature, however upon discovery of the "Hot Coffee" mod and an ensuing investigation, the ESRB changed the rating to "AO" for Adults Only. This caused most retailers to pull the game from store shelves.
Most retailers have a policy of not selling "AO" rated games in their stores. Take-Two later reached an agreement with the ESRB to release a patch that would make "Hot Coffee" inaccessible, and replace original copies with the patched version in order to regain the "M" rating, which allowed retailers to restock the popular title.
"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."
Under the FTC settlement, Take-Two must now prominently disclose any questionable content on the cover of the game, unless the company had already informed the ESRB of its content. Additionally, the company is barred from misrepresenting the content of a game in the future.
As well as the above stipulations, Take-Two is now also required to establish and maintain a system where content is reviewed prior to submission to a rating authority. Failure to comply with the order would result in fines of up to $11,000 per violation.
The FTC will also require Take-Two to file compliance reports on a regular basis, according to the settlement.
Take-Two Interactive had not commented on the settlement as of press time.