[Congressional Record (Bound Edition), Volume 151 (2005), Part 13]
[House]
[Pages 17175-17179]
[From the U.S. Government Publishing Office, www.gpo.gov]




EXPRESSING SENSE OF THE HOUSE THAT THE FEDERAL TRADE COMMISSION SHOULD 
 INVESTIGATE THE PUBLICATION OF THE VIDEO GAME ``GRAND THEFT AUTO: SAN 
                               ANDREAS''

  Mr. UPTON. Mr. Speaker, I move to suspend the rules and agree to the 
resolution (H. Res. 376) expressing the sense of the House of 
Representatives that the Federal Trade Commission should investigate 
the publication of the video game ``Grand Theft Auto: San Andreas'' to 
determine if the publisher intentionally deceived the Entertainment 
Software Ratings Board to avoid an ``Adults-Only'' rating, as amended.
  The Clerk read as follows:

                              H. Res. 376

       Whereas the video game ``Grand Theft Auto: San Andreas'' 
     was given a rating of ``Mature'' by the Entertainment 
     Software Ratings Board;
       Whereas the game contains sexually explicit content that is 
     accessible by consumers but that appears to have been hidden 
     from the ratings board in order to avoid the game receiving 
     an ``Adults Only'' rating;
       Whereas the Entertainment Software Ratings Board took swift 
     action in investigating the matter and revoked the ``Mature'' 
     rating, ensuring any future sales of ``Grand Theft Auto: San 
     Andreas'' will be under an ``Adults Only'' rating; and
       Whereas the publisher of the video game, Rockstar Games, 
     may have deceived the ratings board and consumers: Now, 
     therefore, be it
       Resolved, That it is the sense of the House of 
     Representatives that--
       (1) the Federal Trade Commission should investigate the 
     publication of the video game ``Grand Theft Auto: San 
     Andreas'' to determine if the publisher, Rockstar Games, 
     deceived the Entertainment Software Ratings Board to avoid an 
     ``Adults-Only'' rating; and
       (2) if the Commission determines Rockstar Games to have 
     committed such deception or fraud, the Commission should 
     apply the toughest of penalties.

  The SPEAKER pro tempore. Pursuant to the rule, the gentleman from 
Michigan (Mr. Upton) and the gentlewoman from Minnesota (Ms. McCollum) 
each will control 20 minutes.
  The Chair recognizes the gentleman from Michigan (Mr. Upton).


                             General Leave

  Mr. UPTON. Mr. Speaker, I ask unanimous consent that all Members may 
have 5 legislative days within which to revise and extend their remarks 
on this legislation and to insert extraneous material on the same.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from Michigan?
  There was no objection.
  Mr. UPTON. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, last week I was appalled to hear about the release of 
the new version of the video game Grand Theft Auto: San Andreas having 
a back door to porn embedded in its files. That kind of material would 
have certainly earned it an ``Adults-Only'' rating rather than the 
``Mature'' rating that it has been marketing. I cannot imagine how a 
good player in the video game industry could make an honest mistake of 
something like that, so you have to wonder just what they are trying to 
do.
  We have had hearings on rating video games as well as music and 
movies in our committee, and I believe fully that parents are the first 
line of defense for controlling what their kids watch. Up until now, 
parents have been able to trust the Entertainment Software Ratings 
Board, ESRB, to give them credible information about exactly what is in 
a video game. I want to make sure that that remains the case.
  According to the Federal Trade Commission, the FTC, parents are 
involved in the purchase and rental of games more than 8 out of 10 
times, better than 80 percent, making it indisputably clear that 
parents are the gatekeepers when it comes to deciding what games they 
bring into their homes.
  The facts about consumer awareness and use of the ESRB ratings: 78 
percent of parents are aware of the rating system, up 8 percent in the 
last 2 years; 61 percent of parents are aware of content descriptors, 
up 53 percent in the last 2 years; 70 percent of parents regularly 
check the rating before making a purchase. If this company purposely 
hid that information or material to make a sham of the ratings, it is 
nothing less than deceptive advertising and it ought to be punished, in 
this case severely.
  My resolution, coauthored by the gentleman from Massachusetts (Mr. 
Markey), calls on the Federal Trade Commission to investigate Rockstar 
Games to see if they intentionally deceived the ratings board to avoid 
the Adults-Only rating, and, if they determine that such deception or 
fraud has taken place, that they apply the very toughest of penalties 
or sanctions. The video game industry has gone into great detail to 
define their ratings, but I want parents to feel confident that the 
labeling of the video games that they allow their kids to play or 
purchase is reliable and that bad actors do not get away with 
deceptions like this.
  Mr. Speaker, if these ratings were willfully violated, they ought to 
be

[[Page 17176]]

punished, and a firm should not be allowed to profit from that 
outrageous circumstance when those rules are followed by so many 
families when they buy or see the video games in their homes. This 
resolution calls for that.
  Mr. Speaker, I include for the Record a letter that I sent earlier 
this week to the Chair of the FTC signed by more than 75 Members of 
Congress, the cover letter signed by the gentleman from Michigan (Mr. 
Dingell), the gentleman from Texas (Mr. Barton), the gentleman from 
Massachusetts (Mr. Markey) and myself, asking that the FTC take every 
action that they can if, in fact, the material shows that it was wrong 
in terms of getting the ``M'' rating.

                                Congress of the United States,

                                    Washington, DC, July 21, 2005.
     Hon. Deborah Platt Majoras,
     Chairman, Federal Trade Commission,
     Washington, DC.
       Chairman Majoras: We write to express our profound concern 
     regarding the sexually explicit material contained in the 
     rated ``M'' video game ``Grand Theft Auto: San Andreas.'' We 
     ask for your attention to this matter and to determine if the 
     publisher, Rockstar Games, intentionally deceived the 
     Entertainment Software Rating Board to avoid an ``Adults-
     Only'' rating. We believe that they may have and the toughest 
     penalties need to be applied.
       The recent release of ``Grand Theft Auto: San Andreas'' was 
     widely anticipated by consumers, but an ``Adults-Only'' 
     rating would have severely limited its sales in retail 
     outlets. It appears that the publisher has blatantly 
     circumvented the rules in order to peddle sexually explicit 
     material to our youth, and they should be held accountable.
       We stand in agreement that parental involvement is the most 
     important line of defense in determining the type of content 
     suitable for children, and the ratings system empowers 
     parents to do just that. Unfortunately, this latest incident 
     of deceit has severely degraded the integrity of the ratings 
     system. How can parents trust a system in which game makers 
     do an end-run around the process to deliver pornographic 
     material to our kids?
       We appreciate the ESRB's swift action in investigating the 
     matter and revoking the M rating and ensuring any further 
     sales of ``Grand Theft Auto: San Andreas'' will be under an 
     AO rating. But this action should have never been necessary 
     had Rockstar Games complied with industry standards from the 
     outset.
       We respectfully request that you investigate this matter, 
     and if Rockstar Games is found to have intentionally deceived 
     American consumers, we ask that severe sanctions are imposed 
     to the greatest extent under the law. This type of 
     profiteering from peddling smut to minors must not be 
     tolerated. A company cannot be allowed to profit from deceit.
       We appreciate your attention to this matter and look 
     forward to your response.
           Sincerely,
       Fred Upton, Ed Markey, Joe Barton, John Dingell, and 75 
     other Members of Congress.

  Mr. Speaker, I reserve the balance of my time.
  Ms. McCOLLUM of Minnesota. Mr. Speaker, I yield myself such time as I 
may consume.
  I appreciate the opportunity to speak on House Resolution 376. I 
would like to commend the resolution's author, the gentleman from 
Michigan (Mr. Upton). I agree with the previous remarks made by him.
  Let me start by commending an organization, however, I have worked 
with over the past 3 years, the National Institute on Media and the 
Family, and its founder Dr. David Walsh, for uncovering and exposing 
this video game scandal. Dr. Walsh and the Institute on Media and the 
Family have for years been calling for an independent rating system on 
interactive video games. They have been national leaders on calling on 
retail stores across the country to ensure age-specific ratings are 
enforced. I agree, and I support an independent rating system and 
retailer responsibility.
  The video game industry has a scandal on its hands, and parents 
across America have been given a wake-up call. Video games can be fun, 
but they can also be very powerful tools for exposing children to 
violence, sex and inappropriate material. Grand Theft Auto: San Andreas 
is not a video game. It is a violent and sexually explicit tool to 
train virtual victimizers in crime and sexual violence, and this was 
before the current pornographic scenes were exposed.
  In a review of Grand Theft Auto: San Andreas on Amazon.com, it is 
described as ``even more bloody, violent and sadistic than its popular 
predecessors, offering up an enormous 3-D city in which nearly any 
criminal act is possible. Players are free to steal cars, beat up the 
local population for their money or weapons, to make time with 
prostitutes, or to simply roam to their heart's content.'' That was a 
review before the pornographic scenes were made known.
  Dr. Walsh has been, as I said, outspoken on this issue. Even before 
the pornographic scenes were exposed, Dr. Walsh, and I quote him as 
saying, this was not an appropriate game for our children, this 
violence training tool was rated ``M'' for mature, meaning the material 
was suitable for persons age 17 and older. Titles in this category may 
contain intense violence, blood and gore, sexual conduct, and/or strong 
language. The shooting of police officers, the killing of senior 
citizens for sport and winning points for sleeping with prostitutes and 
then killing them is not a game for 17-year-olds. It is disgusting, and 
it is a vile example of an industry with enormous potential being 
hijacked.
  However, I would like to applaud two Minnesota-based retailers, Best 
Buy and Target, for their responsible and prudent decision to remove 
this so-called ``game'' from their shelves. I strongly support the 
intent of this resolution.
  I would also like to enter for the Record two editorials, one from 
the Minneapolis Star Tribune and one from the New York Times, calling 
on action because of this game.

           [From the Minneapolis Star Tribune, July 25, 2005]

              Grand Theft/Absent Porn, Still Not for Teens

       Take-Two Interactive and Rockstar Games must have thought 
     they were pulling a fast one on parents. Hidden in the 
     bestselling video game ``Grand Theft Auto: San Andreas''--
     activated by an Internet download and a code--are scenes that 
     allow players to engage in virtual sex acts.
       But the inside joke eventually went public. And people 
     didn't laugh.
       Last week, the Entertainment Software Ratings Board (ESRB) 
     slapped an AO (adults only 18-plus) rating on the popular 
     video game. Immediately, Wal-Mart, Target, Best Buy and 
     several other retailers pulled it from their shelves. 
     Rockstar, the game's developer, which for weeks blamed 
     ``outsiders'' for the sexually explicit modifications, now 
     admits that the retail version was produced with them on the 
     game. It has now ceased production of that version and will 
     produce one minus the pornography.
       Before someone is tempted to nominate either company for a 
     Good Citizenship Award, keep in mind what will remain on the 
     game. ``Grand Theft Auto: San Andreas'' is definitely not 
     ``Ms. Pacman.'' An amazon.com review describes it as ``even 
     more bloody, violent, and sadistic than its popular 
     predecessors, offering up an enormous 3-D city in which 
     nearly any criminal act is possible. Players are free to 
     steal cars, beat up the local population for their money (or 
     weapons), make time with prostitutes, or simply roam to their 
     heart's content.''
       The ``toned-down'' version will be rated Mature, making it 
     available for anyone 17 or older.
       The violence in ``Grand Theft Auto'' is not an aberration. 
     Take-Two is excited about its upcoming release, ``Bully.'' 
     Take-Two says ``you'll laugh and cringe as you stand up to 
     bullies, get picked on by teachers, play pranks on malicious 
     kids, win or lose the girl, and ultimately learn to navigate 
     the obstacles of the fictitious reform school, Bullworth 
     Academy.'' Given its track record with other games, it is 
     safe to assume gunplay will be featured prominently in 
     ``Bully.'' We wonder if the folks in Littleton, Colo., or 
     Cold Spring, Minn., will laugh.
       This all alarms David Walsh, president and founder of the 
     National Institute on Media and the Family. His research 
     shows that the teen brain is still a work in progress, 
     struggling to manage sexual and violent impulses. These 
     games, which are marketed toward teens, should not be in the 
     hands of teens, he believes.
       We agree. The rating system for video games simply doesn't 
     work. The ESRB was established by the Entertainment Software 
     Association. Advising the ESA is an executive from Take-Two 
     Entertainment, which owns Rockstar, which makes of ``Grand 
     Theft Auto.'' It's comparable to letting the defense attorney 
     serve as the jury foreman.
       This industry repeatedly has shown it can't be trusted to 
     monitor itself. There is too much money to be made from young 
     people by keeping ratings standards relaxed, and there are no 
     penalties for companies that skirt the rules.
       Parents aren't off the hook. They need to take more of an 
     interest in the kinds of games their children are playing. 
     But a truly independent oversight body is necessary. By

[[Page 17177]]

     evaluating and rating these games, a proper oversight panel 
     would help arm parents with the information they need to 
     ensure the video games their children are playing are age-
     appropriate.
                                  ____


                [From the New York Times, July 21, 2005]

     Video Game Known for Violence Lands in Rating Trouble Over Sex

                           (By Seth Schiesel)

       Under pressure from Democratic senators, the board that 
     rates video games assigned the latest installment of the 
     Grand Theft Auto series an adults-only label yesterday, 
     effectively removing it form the shelves of most major retail 
     stores.
       The decision comes a few weeks after independent 
     programmers uncovered a sexually suggestive scene that the 
     game's creators say was never meant to be seen.
       The board's president, Patricia Vance, said yesterday that 
     the move was the first time in years that the group, the 
     Entertainment Software Rating Board, had changed the rating 
     for a game that had already been released. The rating was 
     changed to ``Adults Only'' from ``Mature,'' which is meant to 
     signal appropriateness for players 17 and older.
       Several top video game retailers, including Wal-Mart and 
     Target, said yesterday that they would no longer sells the 
     current version of the game, Grand Theft Auto: San Andreas.
       Like the motion picture ratings system, the video game's 
     review system is nominally voluntary but usually compulsory 
     in practice. Just as major movie theater chains almost always 
     refuse to exhibit NC-17 movies, most mainstream retailers 
     refuse to stock adults-only games.
       The game's developer, Rockstar Games, which is owned by 
     Take-Two Interactive, said yesterday that it would stop 
     making the current version of the game and would release a 
     new version as soon as possible.
       Fueled by a mix of freewheeling play and rough-and-tumble 
     urban motifs, the Grand Theft Auto series has become one of 
     the world's most popular game franchises. According to the 
     NPD Group, a market research firm, the game had sold more 
     than 21 million copies since 2001 and had generated $924 
     million in revenue for Rockstar Games.
       Even as game players, mostly young men, have flocked to the 
     series, politicians have signaled it out for its violence and 
     sexually suggestive material.
       The franchise's latest installment, San Andreas, has sold 
     almost six million copies since its release in October but 
     has drawn close scrutiny in recent weeks after independent 
     game enthusiasts uncovered a sex-oriented ``minigame'' that 
     had been hidden in the program's code.
       To unlock the hidden scene, a user must download a program 
     from the Internet known as Hot Coffee that was created by 
     fans of the game. The scene depicts mostly clothed digital 
     people performing sex movements.
       ``An artist makes a painting, then doesn't like the first 
     version and paints over the canvas with a new painting, 
     right?'' said Rodney Walker, a spokesman for Rockstar Games. 
     ``That's what happened here. Hackers on the Internet made a 
     program that scratches the canvas to reveal an earlier draft 
     of the game.''
       Yesterday's decision by the rating board is sure to fuel 
     tension between game companies and a subset of their players, 
     known as modders, who make modifications for their favorite 
     titles. Many companies, including Rockstar, have 
     traditionally encouraged modders as a way of extending the 
     life and relevance of their games.
       But yesterday's action may also encourage publishers to 
     make their games less alterable so that they are not held 
     responsible for the changes the modders make or the old code 
     that they unearth.
       In a statement, Take-Two said that it was considering legal 
     action against companies that help game players change the 
     content.
       Game players can buy devices on Web sites that allow them 
     to alter games for consoles like Sony's PlayStation 2 that 
     are impossible for normal users to change. On personal 
     computers, users can change their games without special 
     hardware.
       Ms. Vance, the board's president, said that the mere 
     presence of the Hot Coffee scene on the game disc, even in 
     locked form, was cause to change the rating.
       This is the first time that we have dealt with a third-
     party modification and this raises a number of issues that we 
     as an industry will have to deal with,'' Ms. Vance said.
       ``We want to make it very clear to publishers that they 
     must clean up their product before shipping it.'' she said. 
     ``In the past they may have included content on the disc that 
     they never intended the audience to access, but now hackers 
     have sophisticated tools to unlock this stuff and the 
     publishers have to be sure to either disclose the material to 
     us or delete it.''
       Yesterday's move came as the industry and the ratings board 
     have come under increasing political pressure. After reports 
     about the modification, Senator Hillary Rodham Clinton, 
     Democrat of New York, called on the Federal Trade commission 
     last week to investigate the game's earlier mature rating.
       Mr. Walker of Rockstar said the company intended to release 
     a new version of the game without the Hot Coffee code as soon 
     as possible.
       Ms. Vance said such a move would restore the Mature rating, 
     and a Wal-Mart spokeswoman said that her company would almost 
     certainly restock the new version.
       Nonetheless, Take-Two lowered its financial forecast for 
     its year that ends in October.
       The company said it expected net sales for the year of 
     $1.26 billion to $1.31 billion, down from an earlier forecast 
     of $1.3 billion to 1.35 billion. The company said it expected 
     earnings of $1.05 to $1.12 a share, down from an earlier 
     forecast of $1.40 to $1.47 a share.

  The Federal Trade Commission should look into this matter and 
investigate how this hidden material was placed in Grand Theft Auto. 
Parents across America must learn from this episode and participate and 
understand the games that their children are playing. They must play 
the games with their children when they bring them home and constantly 
review as the child progresses through the game, as the game changes. 
But right now what is needed more than ever is an independent rating 
system. We need it. We need it immediately.
  Mr. Speaker, I yield back the balance of my time.
  Mr. UPTON. Mr. Speaker, I yield myself the balance of my time.
  Mr. Speaker, I am a dad. I have got two teenagers. My son has an X 
Box game. We are very careful in terms of the games that come into our 
house, both when we go to the store to purchase them as well as what 
both he and my daughter watch. It is my clear understanding, and the 
gentlewoman from Minnesota and my colleagues here know it is our 
understanding, that this particular video game never should have had an 
``M'' rating. It always should have been an ``Adults-Only.'' Had it had 
an ``Adults-Only,'' it would not have been on the shelves of a number 
of different major retail stores, whether they be Best Buy, Sears, Wal-
Mart, et cetera. It was appropriate that they immediately remove those 
games from their shelves.

                              {time}  1545

  It is not appropriate. We are thinking that we are taking the right 
steps to send that message for all families across this country. Not 
only did we get the letter that was signed literally in about 10 
minutes by more than 75 Members of this House in a bipartisan approach, 
but I have called the FTC to talk with them as well to make sure that 
if, in fact, they did violate the standard that they ought to use every 
sanction that they can to go after this particular manufacturer.
  But this resolution spells it all out as well. And I would urge my 
colleagues to support this resolution because that indeed will send the 
message not only to this particular gamemaker but to use all the 
strength that the FTC has for those who violate those standards that we 
ought to seek sanctions appropriately to go after them so they do not 
profit from despicable games like this that no 13-year-old ought to be 
exposed to, let alone families across the country.
  Mr. BACA. Mr. Speaker, I rise in support of H. Res. 376, to ask the 
FTC to look into the misrating of the ``Grand Theft Auto'' video game.
  I have been working on this issue for the last five years, since 
2000, and have been working also with Representative Wolf and others to 
ensure that members and the public understand the importance of this 
issue to our children. It's good to know that other members are 
becoming aware of the problem and together we can work in a bipartisan 
effort and make a difference.
  Through our hard work, and that of those who are with us, the ESRB, 
the Voluntary Industry Rating Board, has now changed the rating of 
``Grand Theft Auto'' from an M to an AO. That is not enough, because 
there are literally dozens of games out there that have the same type 
of offensive content, and the burden is now on the industry to explain 
why all of those games should not be rated AO, also.
  But we will not wait for the industry. We must take action now. We 
must step up the pressure. For this reason, we have asked the FTC to 
scrutinize all video games, including ``Grand Theft Auto'', to make 
sure they are properly rated. We appreciate the continued expression of 
support by the Congress. Together we can make a difference.
  My legislation, the Software Accuracy and Fraud Evaluation Rating Act 
or Safe Rating

[[Page 17178]]

Act (H.R. 1145), would empower parents, by calling upon the FTC to look 
at all video game ratings.
  Parents are the gatekeeper for what their children watch or play, but 
how can they do that, if the ratings are not accurate? How can they do 
that if the ratings are confusing? We must empower parents!
  The decision to rate ``Grand Theft Auto--San Andreas'' as adults only 
represents a small victory for those of us who have been calling on the 
video game industry to clean up its act.
  However, the industry's self-regulation is a case of the fox guarding 
the hen house--and American children are at risk because of this.
  Although the ratings board has decided in July of 2005 that San 
Andreas should be rated adults only, it has already been sold for at 
least 18 months, earning millions of dollars for its producer. In fact, 
it was the best-selling game of 2004! And that means that millions of 
American children have played it, being exposed to graphic violent and 
sexual content.
  Parents are confused by the ratings and angry that their kids are 
being exposed to filth and violence.
  I hear from concerned parents in my district in California and from 
all over America.
  The most important step we should take now is to pursue an 
investigation by the Federal Trade Commission into the video game 
rating system as my legislation calls for.
  I have recently met with the FTC chairwoman Deborah Majoras to press 
for changes in how the games are reviewed and rated.
  This is a $25 billion worldwide industry that makes much of its 
profits by targeting teenage and younger boys.
  The industry can give a game an M rating with a wink because it knows 
that any kid can buy a game even if it has an M rating.
  There are several problems with the M Rating:
  The wording on the label (in the small print on the back of the 
package) does not give parents a full and honest understanding of what 
is really in the game.
  The M rating is confusing because the criteria that the industry uses 
to determine an M rating is almost identical to what it uses for the 
adults only rating.
  Kids are buying these games! This month CBS News reported the results 
of a recent study: Despite the warning labels, 50 percent of boys age 
7-14 have bought a game rated-M, for mature audiences, and a stunning 
nine out of ten of the boys have played them.
  These games are harmful to children. Playing a violent or graphic 
video game hurts a child even more than watching a violent movie or TV 
show or listening to an obscene song because the child is role playing. 
The child assumes the identity of a criminal or a gang member.
  Too many video games glorify and reward violent and criminal 
behavior. Why don't the video games feature heroic characters? Instead 
of having a child act like a cop-killer, why not make him a police 
officer? Instead of someone who kills, why not make him a lifesaver, 
like a fireman or a doctor?
  It's time that the video game industry acted responsibly. It's time 
to take a hard look at their ratings. We must support this legislation 
on the floor today, and I urge all members to give their full support 
to my bill, H.R. 1145, to have the FTC look at the ratings of all video 
games.
  Mr. WOLF. Mr. Speaker, with consideration of H. Res. 376, which 
expressed the sense of the House of Representatives that the Federal 
Trade Commission Should Investigate the Publication of the Video Game 
``Grand Theft Auto: San Andreas'' to determine if the publisher 
intentionally deceived the Entertainment Software Ratings Board to 
avoid an ``Adults-Only'' rating, I would like to enter a recent article 
from the Los Angeles Times into the Record. This article highlights the 
conflict of interest that is inherent in a voluntary rating system. The 
real question is: Can you trust this industry?

              [From the Los Angeles Times, July 21, 2005]

             Hidden Sex Scenes Spark Furor Over Video Game

                             (By Alex Pham)

       The oversight board that puts parental ratings on video 
     games took the unusual step Wednesday of slapping its 
     strongest warning on a bestselling title as the game maker 
     admitted putting explicit, interactive sex scenes on the 
     disc.
       Retailers began pulling copies of ``Grand Theft Auto: San 
     Andreas'' from their shelves after the Entertainment Software 
     Ratings Board revoked the game's ``Mature'' rating and raised 
     it to ``Adults Only.'' Publisher Take-Two Interactive 
     Software Inc. said it planned to rework ``San Andreas''--the 
     top-selling video game of 2004--and reissue it later this 
     year.
       The ratings board is similar to the Motion Picture Assn. of 
     America's rating board. A ``Mature'' rating is analogous to 
     an R movie rating, and ``Adults Only'' is equivalent to NC-
     17. Most retailers refuse to sell ``Adults Only'' games.
       Executives at New York-based Take-Two had denied for weeks 
     that company programmers were responsible for the graphic sex 
     scenes, which can be unlocked with software that was widely 
     available on the Internet. But Wednesday they acknowledged 
     that the game's designers had created the scenes, dubbed 
     ``Hot Coffee.''
       ``The editing of any game is a highly technical process,'' 
     said Take-Two spokesman Rodney Walker. ``We liken it to a 
     painter who paints one painting and paints over it on the 
     same canvas.''
       Walker's explanation did little to mollify critics, who 
     point to the ``Grand Theft Auto'' series to highlight the 
     issue of violence and sexuality in video games. The games 
     celebrate nihilistic killing, and Take-Two has reveled in its 
     image as the bad boy of a $25-billion global game industry 
     that's trying to gain respectability to match its profits.
       ``It looks like Take-Two Interactive purposefully conned 
     the video game industry rating board and parents across the 
     country,'' said Washington state Rep. Mary Lou Dickerson. 
     ```San Andreas,' as a top-selling game in the country, now is 
     in the hands of thousands of children who can practice 
     interactive pornography. There should be legal consequences . 
     . . so [the company doesn't] laugh all the way to the bank.''
       ``San Andreas,'' which retails for about $50, has sold more 
     than 12 million copies worldwide since its launch in October. 
     ``Mature'' rated games are intended for players older than 
     17. Many retailers keep such games under lock and key and 
     have policies requiring clerks to check the identification of 
     buyers.
       Wal-Mart Stores Inc., which accounts for as much as 20% of 
     video game sales in the United States, began removing ``San 
     Andreas'' from its shelves Wednesday, as did Best Buy Co.
       ``Our policy is not to carry any adult titles on our 
     shelves,'' said Wal-Mart spokeswoman Karen Burk, who said 
     buyers ``can certainly bring the product back'' for a refund.
       Take-Two said it would make a patch available for 
     downloading so that customers could block the sex scenes.
       Word of the scenes began spreading over the Internet last 
     month after Dutch programmer Patrick Wildenbourg began 
     distributing software that he said unlocked them.
       Many video games have secrets to which players gain access 
     as they progress. They might, for instance, win extra powers 
     or reach hidden levels.
       ``Hot Coffee,'' by contrast, is an interactive sex game, 
     featuring oral sex and intercourse.
       Wildenbourg, who removed his software from the Internet on 
     Wednesday, declined to comment.
       As late as last week, Take-Two had insisted that the sex 
     scenes were ``the work of a determined group of hackers who 
     have gone to significant trouble to alter scenes in the 
     official version of the game.'' Hackers, the company said, 
     created the scenes by ``disassembling and then combining, 
     recompiling and altering the game's code.''
       The scenes prompted an outcry from game critics, including 
     Sen. Hillary Rodham Clinton (D-N.Y.), who last week called 
     for a federal investigation into ``Hot Coffee.''
       The Entertainment Software Ratings Board began a review to 
     determine whether the scenes were part of the game's original 
     code and warranted a re-rating of ``San Andreas,'' versions 
     of which play on Sony Corp.'s PlayStation 2, Microsoft 
     Corp.'s Xbox and personal computers.
       ``After a thorough investigation, we have concluded that 
     sexually explicit material exists in a fully rendered, 
     unmodified form on the final discs of all three platform 
     versions of the game,'' said Patricia Vance, president of the 
     ratings board. ``Clearly the [original] rating was incorrect, 
     and it needed to be corrected.''
       Take-Two's Walker said Wednesday that the sex scenes were 
     never meant to be seen by the public and that they were 
     revealed only when an outside programmer, called a 
     ``modder,'' wrote software to unlock them.
       ``The mod community scratched the painting, revealing the 
     earlier work,'' he said.
       Analysts estimated that modifying and remarketing ``San 
     Andreas'' would cost Take-Two about $40 million in lost 
     sales. Shares of Take-Two fell 11% in after-hours trading.
       ``It was a very poor exercise of judgment and a very costly 
     one,'' said Michael Pachter, a video game industry analyst at 
     Wedbush Morgan Securities in Los Angeles. ``It's an 
     embarrassment for management because obviously a maverick 
     developer in their studios decided to put this stuff in 
     there. I can only fault the management team for not putting 
     systems in place to vet their games.''
       Take-Two is no stranger to controversy. Previous 
     installments of ``Grand Theft Auto'' have been adored by 
     hard-core gamers but excoriated by parent groups and 
     lawmakers for their depictions of violence and sex.
       In one, players could have sex with a prostitute and then 
     beat her to death and take back their money. That game was 
     rated ``Mature'' because players did not see the sex. 
     Instead, they saw a parked car rock back and forth.

[[Page 17179]]

       Some lawmakers criticized the ratings board for failing to 
     detect the sex scenes in its initial evaluation of ``San 
     Andreas'' last year. Although the system is voluntary, most 
     game publishers seek a rating from the organization, which 
     evaluated more than 1,000 titles last year.
       ``It should not have taken this long,'' said Rep. Joe Baca 
     (D-Rialto). ``This is evidence that the voluntary ratings 
     system does not work.''
       Video game industry executives tried to assure parents that 
     the ``San Andreas'' incident was an anomaly.
       The ratings board ``has been in business for 11 years, and 
     there has never yet been an incident of this kind,'' said 
     Doug Lowenstein, head of the Entertainment Software Assn., 
     the industry's trade group. ``You're looking at well over 
     10,000 games rated. If you look at that track record, you can 
     say parents have every reason to be confident in the ratings 
     system.''
       Some consumers weren't completely reassured.
       ``As a parent I've lost some confidence in the [ratings 
     board's] ability to police the industry,'' said Dennis 
     McCauley, editor of GamePolitics.com. ``But [the board] did 
     take a big step today, and I have to give them credit for 
     that.''

  Mr. HOYER. Mr. Speaker, I rise in support of H. Res. 376, which 
expresses the sense of the House of Representatives that the Federal 
Trade Commission should investigate the publication of the video game 
``Grand Theft Auto: San Andreas'' to determine whether the publisher 
deceived the Entertainment Software Ratings Board to avoid an ``Adults-
Only'' rating.
  I believe that the government should always tread lightly and 
carefully in taking action that evaluates the content of video games, 
music, movies, books and similar materials.
  I also believe that parents have the primary responsibility for 
evaluating and monitoring the content available to their children.
  However, the content industry--movie studios, television networks, 
record labels, book publishers, and video game developers--also has a 
responsibility to accurately, honestly and responsibly label and market 
their products.
  Thus, I believe it is appropriate and necessary for the Federal Trade 
Commission to inquire and investigate the development and marketing 
process for ``Grand Theft Auto: San Andreas.''
  There is no question that pornographic material was embedded in this 
video game, and that it has been marketed to teenagers and sold in 
stores in every community in America. The developers and publishers of 
this video game owe an explanation. Were they aware that the game 
contained embedded scenes that would inevitably be revealed? And, did 
they purposely pursue a rating from the Entertainment Software Rating 
Board of ``Mature'' rather than ``Adults Only'' to ensure that the game 
could be sold teenagers and thus a broader market?
  This is the purpose of this investigation and this bill. Intentional 
deception must not go unpunished.

  Mr. UPTON. Mr. Speaker, I have no further requests for time, and I 
yield back the balance of my time.
  The SPEAKER pro tempore (Mr. Kolbe). The question is on the motion 
offered by the gentleman from Michigan (Mr. Upton) that the House 
suspend the rules and agree to the resolution, H. Res. 376, as amended.
  The question was taken.
  The SPEAKER pro tempore. In the opinion of the Chair, two-thirds of 
those present have voted in the affirmative.
  Mr. UPTON. Mr. Speaker, on that I demand the yeas and nays.
  The yeas and nays were ordered.
  The SPEAKER pro tempore. Pursuant to clause 8 of rule XX and the 
Chair's prior announcement, further proceedings on this motion will be 
postponed.

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