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FTC and Rockstar Settle Hot Coffee Dispute

Posted by Zonk on Thu Jun 08, 2006 03:04 PM
from the angryness dept.
kukyfrope writes "The FTC and Rockstar/Take-Two have reached a settlement surrounding the 'Hot Coffee' mod for GTA: San Andreas that will serve to prevent future incidents. The FTC has stated that Rockstar and Take-Two must disclose all content to the ESRB when rating games, or face an $11,000 fine per violation if undisclosed content is discovered. 'Parents have the right to rely on the accuracy of the entertainment rating system. We allege that Take-Two and Rockstar's actions undermined the industry's own rating system and deceived consumers,' commented Lydia Parnes, Director of the FTC's Bureau of Consumer Protection."
+ -
story

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[+] Your Rights Online: Take Two Investigated by New York Grand Jury 65 comments
cjm182 writes "Over a year after the infamous sex minigame (aka Hot Coffee) was found in Grand Theft Auto: San Andreas, the New York District Attorney's office has subpoenaed Take Two Interactive and its subsidiary, Rockstar Games. Reuters reports that a grand jury requested documents relating to 'company officers' and directors' knowledge about the creation and inclusion of the 'Hot Coffee' minigame. This marks the first time Take Two has been asked to provide documents directly relating to the incident. Last week, GamePolitics.com ran an editorial calling for the U.S. Congress to subpoena Take Two directly, rather than criticize the FTC and the ESRB over the incident."
[+] Employee Exodus at Rockstar Games? 52 comments
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[+] Rockstar Finally Wins a Lawsuit 30 comments
Eurogamer is reporting that Rockstar Games has finally won a lawsuit. It's an important one too, involving a strip club's objection to its appearance (in satirized form) in the streets of San Andreas. From the article: "Rockstar conceded that its artists worked from photographs of real life LA locations - including the Play Pen - when designing the game, but argued that they 'changed the names, building designs and overall look and feel of the locations... To make them fit the virtual, cartoon-style world of San Andreas and the series' irreverent tone.' Rockstar also referred to the lawsuit MCA Records successfully defended over the song Barbie Girl, when the judge ruled that trademark rights 'do not entitle the owner to quash an unauthorized use of the mark by another who is communicating ideas or expressing points of view.'"
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An anonymous reader writes "Family members of three victims of a shooting by a 14-year-old have filed a $600 million lawsuit against the makers of Grand Theft Auto: Vice City. From the article: 'The $600 million lawsuit names several companies and Cody Posey, who it alleges played the game ''obsessively'' for several months before he shot his father, stepmother and stepsister in July 2004 ... The plaintiffs accuse the corporate defendants -- Sony Corporation of America, Take-Two Interactive Software Inc. and its subsidiary, Rockstar Games -- of a civil conspiracy, saying they should have foreseen their entertainment would spawn such copycat violence.'" It may or may not be a coincidence that Jack Thompson is the plaintiff's attorney.
[+] Rockstar's Road To Ruin 59 comments
Via GamePolitics, an exerpt from an upcoming Wired print magazine article on Rockstar's slide from grace. The article outlines a number of the problems we've discussed here on the site, such as their numerous lawsuits, the 'Hot Coffee' scandal, and stock-option problems. At four pages it's only a teaser for the longer article in the magazine, but it's still very much worth taking a look. "The irony is thick: The company that defined virtual criminality is now associated with the real thing. Rockstar and Take-Two executives declined to answer questions for this article, but their rich and troubled story is revealed by official documents and former employees. It seems the blokes forgot that in life, as in Grand Theft Auto, there are repercussions for the choices you make."
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  • Wow, $11,000 (Score:4, Insightful)

    by Nos. (179609) <andrew&thekerrs,ca> on Thursday June 08 2006, @03:07PM (#15496684) Homepage
    I wonder how many extra sales Rockstar generated because of the whole Hot Coffee thing. Probably enough to conver that fine several times over. Doesn't seem like much of a deterrant to me.
  • by DrXym (126579) on Thursday June 08 2006, @03:07PM (#15496688)
    featuring gay BDSM cards, can I get Vista rated M?
    • If I produce a mod for Solitaire featuring gay BDSM cards, can I get Vista rated M?

      No, because there's no gay BDSM content already in Solitaire, dumbass. The "Hot Coffee" mod didn't add "mature"-rated content, it just unlocked what was already there (as shipped by Rockstar).

          • Okay - please - explain this to me:

            2 games:
            One ships with nude base models for characters, and clothing is put on top when the models are generated for display. The nude models are never shown during "normal" gameplay, but someone makes a mod to make all clothing transparent.

            The other ships with a blank void where the naughty-bits are, and puts clothes on top, so you never see the blank-void-naughty-bits during gameplay. Someone makes a mod which adds in those naughty-bits.

            Now of course you'll say "But ga
            • by Danse (1026) on Thursday June 08 2006, @04:05PM (#15497232)
              Now of course you'll say "But game A ships with naughty-bits!". It doesn't matter - to the end user running show_naughty_bits.exe, it's the exact same experience. Out here in the real world, there's no difference. Once a game is modified from its original form, why can a company be held responsible?

              Exactly. If the user takes an action specifically to modify the game in a way that would violate its rating, then that's the user's fault, not the game developer's fault. If you don't want to see naughty bits, then don't modify the game. If you don't want your kids seeing naughty bits, then don't let them play unsupervised. This crap has gotten way out of hand and is just ridiculous now.
    • Only if you are unlocking gay bdsm material preexistant(although locked) in the Windows OS.

      I see this kind of like a loose Sarbanes-Oxley for Video Games: we're going to hold you accountable for disclosing information about your video game up front, and ignorance is not an excuse. Fortunately for Rockstar, they got the slap on the wrist this go because the law/court ruling didn't exist up until now.

      Someone at Rockstar left the material coded into the game. Now believe me, I've got nothing against seeing b
    • by gstoddart (321705) on Thursday June 08 2006, @03:25PM (#15496858) Homepage
      If I produce a mod for Solitaire ... featuring gay BDSM cards, can I get Vista rated M?

      Only if you can demonstrate your mod merely unlocked the already existing gay BDSM content which was in Solitaire. Otherwise, it's you who distributed the M content and gets in trouble, now Microsoft.

      In this case, Rock Star shipped the game with that content present, but disabled. This mod only re-enabled the content, not provided it.

      So, if you discover such content in Windows and can release a mod for it, then, be our guest. :-P
  • Um... (Score:5, Insightful)

    by rsilvergun (571051) on Thursday June 08 2006, @03:07PM (#15496696)
    should the FTC be allowed to levy fines on behalf of a private organization? Why the hell is the FTC even involved, wouldn't this be more a contract dispute? Far as I know, they don't get to regulate games, but maybe it all falls under the same decency laws everything else does.
  • by joe 155 (937621) on Thursday June 08 2006, @03:10PM (#15496714) Journal
    I really loved the bit about "parents have the right to rely on the accuracy of the entertainment rating system"... yep, I can see it now...

    "yeah, son, you can play this game where you have to sell drugs, have sex with prostitutes, murder policemen and steal their cars... it's all ok; just so long as there is no unrealistic computer simulated sex in it"

    Why did anyone care about this. Not only was it not in the main game it was by far the least offensive thing in the list I just mentioned... I'd rather my children had sex than killed policemen
  • by Kamel Jockey (409856) on Thursday June 08 2006, @03:10PM (#15496717) Homepage

    Parents have the right to rely on the accuracy of the entertainment rating system. We allege that Take-Two and Rockstar's actions undermined the industry's own rating system and deceived consumers

    This is crazy. It is not like GTA San Andreas was rated "E for Everyone" and then "unexpectedly" showed some adult-rated content to minors. Even with an "M" rating, how could any reasonable parent buy this game for their child and not thing something inappropriate would be there?

  • I'm still confused (Score:5, Insightful)

    by grasshoppa (657393) <<gro.oc-onpt> <ta> <ydenneks>> on Thursday June 08 2006, @03:11PM (#15496730) Homepage
    Why was this even an issue? Rockstar didn't ship this content as active, a third party mod had to be used to get to it. They did not ship that content with intent to be seen, and if the code wasn't there by default to enable that section, it can hardly be their fault if players go out of the way to activate it.
  • A victory? (Score:4, Insightful)

    by Rapter09 (866502) on Thursday June 08 2006, @03:12PM (#15496742)
    Parents have the right to rely on the accuracy of the entertainment rating system
    I think that's a statement that could be construed as a victory for the ESRB, reinforcing that it wasn't the ESRBs fault that T2\RockStar didn't disclose the information. I think it's a good statement.
  • by Frobozz0 (247160) on Thursday June 08 2006, @03:16PM (#15496780)
    "We allege that Take-Two and Rockstar's actions undermined the industry's own rating system and deceived consumers,' commented Lydia Parnes, Director of the FTC's Bureau of Consumer Protection."

    *sigh*

    No, actually it wasn't that big of a deal. Our priorities in this country baffle me sometimes. The rampant violence in this game wasn't bad in their eyes. Some rough sex and they draw the line? Come on, you had to mod the program just to see it!

    I hope enough people see through this charade.
    • by donutello (88309) on Thursday June 08 2006, @03:36PM (#15496948) Homepage
      Rockstar games was and is free to include sex scenes in their video games - as they are free to include violence.

      What they can't do is deceive the rating board about the content. This is the Federal Trade Commission. Deceptive trade practices fall properly within their purview.

      That being said, $11,000 is a ridiculously small fine and takes into account the fact that this was inadvertent rather than intentional.
  • by WidescreenFreak (830043) on Thursday June 08 2006, @03:20PM (#15496817) Homepage Journal
    As indicated above, this is a slap on the wrists. Considering the Nazi-like ways that the FTC has handled "oscenity" issues in the past, like Howard Stern, this is mild! I wonder if this is more becuase they're covering their asses. Let's face facts. They got a ton of criticism because of the way that they handled this. That wasn't a Rockstar release. It was a third party hack. Lots of games have third party hacks that allow this. That doesn't mean that it was done with the approval of the game maker. If a programmer puts an inappropriate comment in a program that will never be displayed but someone gets offended when trying to illegally hack the code, should the company be sued?

    Antucally, this kind of ruling sets a precedence that almost makes it seem like a possible marketing tactic: Hey, if we don't announce this and someone finds out, we could make a huge increase in sales from the publicity and only pay an $11,000 fine! It's costs more to advertize in major gaming magazines!

    I will take exception with one this that was said (emphasis mine):

    Parents have the right to rely on the accuracy of the entertainment rating system.

    Bullsh*t. Parents have the privilege to rely on the accuracy of the entertainment rating system. Just like the movie rating system, these rating are not enacted by laws. They are not legal rights as the ESRB is not an institution that was empowered by a government act! Stop calling them "rights"!! Sorry,folks. Pet peeve, but there is a major difference between a right and a privilege ... at least for now.
    • How does this crap get modded up? This was the FTC, not the FCC that dealt with Howard Stern.

      Bullsh*t. Parents have the privilege to rely on the accuracy of the entertainment rating system. Just like the movie rating system, these rating are not enacted by laws. They are not legal rights as the ESRB is not an institution that was empowered by a government act! Stop calling them "rights"!! Sorry,folks. Pet peeve, but there is a major difference between a right and a privilege ... at least for now.

      No. You are

  • by Red Flayer (890720) on Thursday June 08 2006, @03:22PM (#15496830) Journal
    ""Parents have the right to rely on the accuracy of the entertainment rating system," commented Lydia Parnes, Director of the FTC's Bureau of Consumer Protection."

    After reading TFA, this is the most remarkable line in it. Props to submitter.

    Parents don't have the right to rely on ESRB ratings. They have the ability to do so -- and can if they want -- but that is not a right. If a parent decides the ESRB rating is untrustworthy, or that Take2 is untrustworthy, that is their right. It is their right to not purchase games they feel might not adhere to the voluntary ratings system. Parents have the rihght to choose what's best for their kids -- and if they don't have all the information, that's nobody's fault but their own.

    You know what? If parents have the right to rely on an independent, private body for game ratings, then I have the right to rely on Fox News (an independent, private body, right?) for fair and balanced news, the right to have all the information presented to me. So where's Fox's fine for not presenting fair and balanced news? Please, Ms. Parnes, why doesn't Fox or CNN or ABC or any news or entertainment media entity not get fined $11,000 every time they don't give us all the information?

    /rant

      • by RexRhino (769423) on Thursday June 08 2006, @04:29PM (#15497420)
        But buyer beware is coming back, just in a different form! For example, lets take peanuts (And peanut allergies). People are so sue happy, that companies that don't make any products with any sort of peanut ingredient are labeling their product as having peanuts to cover their asses legally. It is way easier to put a disclaimer on a package saying "this might contain peanuts", than to try to garantee a product doesn't have peanuts and face legal repercussions. It is only a matter of time (and it has damn near almost heere already), that all packages, no-matter what the food or what the circumstance is, will contain warnings about peanuts.

        People alergic to peanuts must have thought they were smart for suing about traces of peanuts in food... but soon they won't be able to know what foods contain peanuts because every company and every food product is going to protect themselves with a peanut warning.

        Same with warning on prescription drugs. Prescriptions drugs now contain warners about "side effects" that include just about every possible symptom anyone can possibly have. It is easier to just give a rediciously long list of possible side effects, than to face the consequences of a law suit. The end result is that the "side effect" warnings of prescription drugs are completly useless. Virtually all the side effects listed for a prescription drug are listed just to cover the asses of the drug maker, and so it is impossible to get any realistic side effect information on a drug from a manufacturer.

        When I buy some non-drowsy cold medicine, I don't really know if I can drive a car after taking the medicine or not, because every drug manufacturer is so afraid of a legal action that they will say not to operate a motor vehicle or heavy machinary just to play it safe.

        Likewise, if you punish video game makers frivolously, they are just going to cover their ass by making everything Mature or Adult Only. Since the vast majority of video games are purchased by adults, and since kids that purchase video games most of the time purchase it with a parent present anyway, companies are just gonna make every single game Adult Only. Wall Mart might not stock AO games now, but if that is the only way they can sell Barbie Pony Adventure and Deer Hunter, they will eventually change their policy.

        The end result for the rating system will be the same. There is no foolproof way to make sure there will never be something interpreted as "offensive" or "adult" or "suggestive" by some board or agency or group. When all games have a panel of catch all warnings and disclaimers, it is going to be harder for parents to judge a game than it is now.
  • by zuki (845560) on Thursday June 08 2006, @03:23PM (#15496839) Journal
    This was totally outrageous! Just as much of a newsworthy item as Janet's 'wardrobe malfunction'!(I couldn't sleep for 3 months after watching that one)!

    It would be a crying shame that kids should be exposed to (Godless?) non-graphical but still titillating sex simulations.

    It might detract from their training shooting hundreds of thousands of opponents, so that they can further be brainwashed into becoming our next batch of cannon fodder to send to Iraq or wherever else our glorious leaders will be "Bringing Freedom" to in the coming years.

    The FTC is only performing its patriotic duty to keep kids in line for all the state-sanctioned killing they will have to do later on.

    Although, as Dr Strangelove once pointed out, reproductive duties might also have to become state-sanctioned and even encouraged when population needs to be replenished due to a 'red button malfunction' in the Oval Orifice.

    Z.
  • by jclast (888957) on Thursday June 08 2006, @04:03PM (#15497215) Homepage

    How is it that Rockstar and Take2 can be fined for submitting their game to an optional software review board?

    Besides, why do we have both M and AO? The ages associated with both are 17 and 18. Drop one and leave the system alone.

    I wrote about this for eToychest [etoychest.org] earlier today, so I won't reiterate my take on the news here, but I will say this:

    Parents have access to a wealth of videogame related information. Reviews and screen captures abound on the Internet. It's time for parents to stand up and do their jobs as parents again. If you can't decide for yourself what your child should be doing, maybe you shouldn't be a parent.

    • Re:Wow... (Score:5, Interesting)

      by SatanicPuppy (611928) * <Satanicpuppy.gmail@com> on Thursday June 08 2006, @03:14PM (#15496756) Journal
      I think it's pretty much a fair judgement. Sure the content was there, but they didn't have any intention of making it widely available. Additionally, even though it was made available, no one accidentally stumbled across it...you had to download a patch, install it, and then play through the game to that point.

      Beyond that, the game was rated M, which is the rating for 17+, which is the same age range as NC-17 which is the adult film category in the states.

      It's hard to see, given all those factors, how it would be possible for them to crack down hard on the game. The superbowl thing was different, because they slipped some (arguably) adult content into an all-ages broadcast.
    • by AHumbleOpinion (546848) on Thursday June 08 2006, @03:52PM (#15497116) Homepage
      "Take-Two must disclose all content to the ESRB when rating games"

      Just to be sure, if I were Take Two,


      If you plan to someday run a company you will need to learn to think through a couple of rounds of moves and countermoves. ;-)

      I'd hand them a hard-copy printout of every single line of code in the game. "You demanded everything. Well, here ya' go! Good luck going through all that."

      And the ESRB responds: "With an attitude like that, no rating for you. Good luck talking to the buyer for Walmart."