Deutch was born in New York City. His parents are Pamela (née Wolkowitz) and Murray Deutch, a music executive and publisher. His uncle is actor Robert Walden (who is his mother's brother). Deutch was raised in a Jewish family. He graduated from George W. Hewlett High School and attended Ohio State University. He began his career in the advertising department of United Artists Records, where his father was company president. Deutch directed music videos for performers such as Billy Idol ("Flesh for Fantasy") and Billy Joel ("Keeping the Faith"). Deutch's feature-length directorial debut was the John Hughes-penned Brat Pack film Pretty in Pink. His next two directorial efforts were also written by Hughes: Some Kind of Wonderful and The Great Outdoors.
Deutch has directed three sequels to films he did not direct: Grumpier Old Men, The Odd Couple II, and The Whole Ten Yards. During a hiatus from features, he directed episodic television, including two installments of Tales from the Crypt and the pilot episode of Melrose Place.
Deutch directed his wife in four episodes of Caroline in the City, and his daughter Zoey in one episode of Ringer.

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