MAX: I’m the one that started the kiss.
LORELAI: And I’m the one that knocked it up to NC-17.

In the US, a rating of NC-17 means that a film is not suitable for children, and nobody aged 17 or under will be admitted to a movie theatre. It replaced the X-rating on films in the 1990s.

Lorelai is saying that their kiss is something the children shouldn’t have been allowed to see.

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