07/02/2008 05:12 am ET Updated May 25, 2011

J.C. Penney's Sex Ad "Disappointing," Fake (VIDEO)

UPDATE: Gawker reports that the J.C. Penney teen sex video was indeed a fake:

Because the spot is so well made, and because someone had to enter it it at Cannes, JC Penney is blaming its ad agency, Saatchi & Saatchi. The ad agency, in turn, is pointing the finger at production company, Epoch Films of New York, which is indeed the listed entrant. There is speculation "the video may have been filmed after hours by a producer at Epoch who was working on the Penney ads for Saatchi."

Silicon Alley Insider's Peter Kafka posted earlier on the suggestive J.C. Penney ad video clip:

When do you complain about a huge, free advertising campaign that's guaranteed to boost your brand's profile? When you're J.C. Penney.

The retailer is reportedly aghast about a clever clip, most likely created by Saatchi & Saatchi, the retailer's ad agency, which is about to become YouTube's most popular clip.You see, it suggests that teenagers may have sex -- and that J.C. Penney endorses the idea.

Watch the video here: