FTC and Rockstar Settle Hot Coffee Dispute
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."
But your original message was still off. Rockstar was not punished for obscenity, since the FTC doesn't not regulate obscenity itself. They were published for deceptive advertising in allowing a rating to go on the game that did not truly reflect its content.