Using a pointing test, perceived location of a target seen in induced motion was evaluated under two display conditions. In one, a fixated, horizontally stationary spot was surrounded by a frame moving back and forth. As the frame moved to each side, its center shifted correspondingly with respect to the subject's objective median plane. In the second display, the surround was constructed so that as it moved back and forth, its center remained in virtual alignment with the objective median plane. Although both conditions produced a substantial induced-motion effect, only the former produced significant shifts in the target's perceived location. Furthermore, similar shifts were also obtained with a stationary, offcenter frame (Experiment 2). This suggests that the changes in perceived location obtained with the first induced-motion display were not derived from the induced motion per se, but, rather, from a frame effect produced when the surround moved to an off-eenter position. Implications for the relationship between perceived motion and position, as well as for two theories of induced motion, are discussed.