Hot Coffee Scandal case finally over.

[Double_Blade]

Take-Two CEO "Pleased" With FTC Verdict

When a company is happy to receive a public trashing from the Federal Trade Commission along with the threat of crippling fines for future violations, you know they must have been worried about the alternatives.

According to Next Generation, Take-Two CEO Paul Eibeler said yesterday, "We are pleased that the FTC has concluded its very thorough investigation, and that the matter has been resolved. We recognize the importance of the FTC investigation, and the necessity of maintaining public confidence in the ESRB rating system, and helping the ESRB educate parents and consumers about the rating system. We look forward to putting this behind us."

The embattled CEO was reacting to Thursday's FTC Hot Coffee report which said that Take-Two and its Rockstar subsidiary had engaged in deceptive marketing practices and circumvented the industry's rating system. The FTC threatened fines up of to $11,000 per unit sold for future servings of Hot Coffee.

Eibeler made the remarks during a quarterly conference call with investment analysts in which the firm disclosed a $50 million loss for the second quarter of 2006.

Take-Two stock (NASDAQ: TTWO) dropped nearly 14% in overnight trading to 14.45. TTWO has lost roughly half of its equity value since its pre-Hot Coffee high point.

In case you don't know what this means, this surely helps.

Yesterday's article:

FTC Rules on Hot Coffee

In a long-awaited ruling, the Federal Trade Commission has found that the companies behind Grand Theft Auto San Andreas engaged in deceptive marketing practices.

The FTC issued a press release this morning, wrapping up a 10-month investigation into the so-called "Hot Coffee" scandal.

Although the FTC concluded that Take-Two and Rockstar used deceptive marketing practices by not revealing that hidden sex animations were on the GTA San Andreas disc, the proposed penalty was quite moderate, at least in economic terms. The ruling is a blow, however, to the public image of both companies as well as the video game industry.

Under terms of a proposed consent decree, the FTC will require Take-Two and Rockstar going forward to clearly disclose all content relevant to a game's rating on its packaging. The companies must also set up a content review system to spare the gaming public additional servings of Hot Coffee. Finally, the companies agreed that they would be subject to fines of up to $11,000 per game sold if they commit such violations in the future.

Essentially, the FTC is saying, "Don't do it again."

Commission members accepted the proposed agreement by a 5-0 vote. The public may comment on the decision, which will be finalized in 30 days. The FTC investigation was requested last year by Congress as well as Sen. Hillary Clinton (D-NY).

Speaking of the investigation, Lydia Parnes, Director of the FTC's Bureau of Consumer Protection, said, "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."

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Well, so, I think the Hot Coffee case is over, I think, or not?

 

[99.vikram]

I sure hope so.

 

[Double_Blade]

Yeah, it's been a year since it happened.

FTC had told Take-two this message,

Don't care about what other modders do or make any obscene mods, just don't contribute or add any of them that you don't intend to.

 

[Jintor]

Jeebus.

I guess they are guilty of misleading advertising, but in a product that is recommended to ages 18+, with 'F***' being used more or less im every second sentence ingame, with multiple references to sex, drugs, murder, theft...

The mind boggles

 

[Maxi]

Law is law. It seems silly, but if you go exactly by the law, as they do in the states, what they did was illegal. Frankly im surprised they got off the hook without having to pay anything.

 

[Double_Blade]

Well, I hope Take-two and Rockstar doesn't get into any form of troubles again in the future. Otherwise, the whole company will be extinct and they had to pay heavy fines.

 

[mortiz]

In comparison to the other stuff that's gone before it this is just a slap on the wrist. The FTC has basically said "Don't do it again or we'll bust your ass". I hope Take Two don't dumb down the future GTA games though for fear of reprise, just make sure there're no sex mini-games and they'll be safe because beating CG characters over the head with baseball bats and running them over is A-OK! Watching low polygon CG characters having sex though using a distinct lack of private parts, oh noes, corrupt the youth of America it will!

 

[Double_Blade]

In comparison to the other stuff that's gone before it this is just a slap on the wrist. The FTC has basically said "Don't do it again or we'll bust your ass". I hope Take Two don't dumb down the future GTA games though for fear of reprise, just make sure there're no sex mini-games and they'll be safe because beating CG characters over the head with baseball bats and running them over is A-OK! Watching low polygon CG characters having sex though using a distinct lack of private parts, oh noes, corrupt the youth of America it will!

Take-Two will surely make another GTA game, but they will be aware and check and remove any obscene mini-games from the future GTA game otherwise they will be flying on their wings to jail.

 

[FieryGoose]

Finally this case is over, I didn't ever play take two's version, but from what a read, they were bound to be taken to court.
Edit: sorry that came out wrong, take twos mod using the games engine, or is take two a coproducer along with rockstar and decide to hide somthing in the game? I'm not really sure just heard about it alot, lol.

 

[Reaktor4]

take twos version?