Entertainment Legal News

Makers of Grand Theft Auto: San Andreas Settle FTC Charges

The companies behind the popular Grand Theft Auto: San Andreas video game have agreed to settle Federal Trade Commission charges that they failed to disclose important information about the game’s content to consumers. According to the FTC, the companies, in advertising the Entertainment Software Rating Board (“ESRB”) rating for the game, did not tell consumers that the game discs contained potentially viewable nude female characters and a potentially playable sex mini-game. Although San Andreas players could not access or view this sexual content during normal game play, sophisticated players posted a program on the Internet, dubbed “Hot Coffee,” that revealed this content on the PC version of the game. PlayStation 2 and Xbox players eventually were able to access the Hot Coffee content by modifying or adding an accessory to their game consoles, installing special software, and inputting “cheat codes” developed by third parties. These developments led to a more restrictive rating by the ESRB.

“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.”

The ESRB originally rated the game’s three versions, for PlayStation 2, PC, and Xbox, as “M” for Mature, with the accompanying content descriptors of Blood and Gore, Intense Violence, Strong Language, Strong Sexual Content, and Use of Drugs. According to the ESRB, video games rated “M” contain content that may be appropriate for those aged 17 and older. The rating information, including the rating symbol and content descriptors, appeared in print, television, and retailer ads for the game, and on game packaging for all three versions, including the claims “MATURE 17+” and “CONTENT RATED BY ESRB.”

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	Did You Know?
	The title of Option is a defined factor When a creative entity, such as producer, artist, or studio, discovers a property and evaluates the rights status, they will, in most cases, attempt to negotiate an 'option' for the rights. An option is the right to acquire ownership of an intellectual property for a pre-determined amount of time. Size of the option payment often determines length of the agreement as well as how many forms of the rights will be included in the deal. While most option payments are subject to negotiation, script deals often work out to an even percentage of the purchase price.