Hong Kong Considers Regulations Amid Rising Complaints Over Claw Machines

For many fairgoers, the scene is all too familiar: The desired plush toy is about to enter a claw machine’s chute when the claw slackens, releasing the prize.

The city’s consumer watchdog is currently considering legislation for the business since Hong Kong residents have grown weary of these commonplace devices.

Claw machines, according to the Consumer Council, “capitalise on consumers’ enthusiasm for testing their luck” and have seen an increase in complaints.

One of them spent HK$500 ($64.4; £50.7) over 45 minutes to win a waffle machine, but he received “nothing more than a few trinkets” in return.

The Consumer Council reported on Monday that 42 complaints were made in the first 11 months of this year, compared to 16 in 2023 and seven in 2022.

“To make winning more difficult, the industry frequently changes the claw settings or adds impediments inside claw machines… “Unfair settings or excessive difficulty could irritate customers,” the council stated in a statement on Monday.

The council’s chief executive, Gilly Wong Fung-han, stated, “We think it’s about time to review whether we should regulate claw machine businesses,” according to reports.

However, programmed claw machines are “actually part of the fun,” according to Jayden Chen, the proprietor of a claw machine rental business in Singapore, who spoke to the BBC.

“After experiencing the thrill and adrenaline, the gamers will continue to play. Who would try a second or third time if they are winning most of the time?

Mr. Chen stated, “Regulations will kill off the fun element,”

In Hong Kong, owners of claw machines can open their businesses without a license.

The man who placed his bid for the waffle maker had used a claw machine that offered “instant prizes”; he felt that customers ought to be able to choose their prize from the range of prices that were on display.

Playing another claw machine, a woman claimed that the claw would slacken and release the toy every time she was about to take it towards the chute.

Players who had spent at least HK$100 without winning may use the machine’s “guaranteed grab” option, which would hold the claw in place until the toy was removed on their subsequent try. “Dishonest trade practice” is how the woman described it.

According to reports, it is possible to set claw machines to only hold firmly for a portion of the time or to release a prize after a predetermined number of attempts.

Another example provided by the council had a third complaint who wished to use a claw machine arcade to break his HK$100 bill into HK$5 coins. However, he only got one HK$5 coin after putting the bill in. He was “compensated” with an equivalent amount in play rounds after his request for a refund was turned down.

The operator maintained its decision to not provide a cash refund despite the man’s protests, claiming that this was an instance of “forced consumption” and that the coin exchange “incurred operating costs such as bank fees.”

The council cautioned consumers to “spend rationally and be mindful of addiction” but did not go into detail on how it would regulate the sector.

“Consumers should assess whether the total amount spent is worth the value of the desired prize,” it stated.

Additionally, is suggested that users record their games on video so that they have some documentation in case of disagreements.

Additionally, it warned customers to be cautious because some claw machines may have been exploited for gambling.