Hong Kong Consumer Watchdog Urges Review of Claw Machine Regulations Amid Rising Complaints

A common source of frustration for many amusement-goers involves claw machines: the claw often loosens its grip just as a desired plush toy nears the prize chute, causing it to drop. This issue has prompted action in Hong Kong, where the city’s consumer watchdog on Wednesday called for an examination of existing regulations governing claw machines, citing an increase in complaints. The Consumer Council highlighted an instance where one individual spent HK$500 ($64.4; £50.7) over 45 minutes attempting to win a waffle maker, ultimately receiving “nothing more than a few trinkets.” The council stated that these machines “capitalise on consumers’ enthusiasm for testing their luck” and advised individuals to “spend rationally and be mindful of addiction.” However, it did not specify how it intends to regulate them. The Consumer Council reported on Monday that 42 complaints were lodged during the first 11 months of this year. This figure represents a significant increase from 16 complaints in 2023 and seven in 2022. In a statement released on Monday, the council noted, “The industry often modifies claw settings or introduces obstacles inside claw machines to make winning more challenging… Excessive difficulty or unfair settings could aggravate consumers.” Gilly Wong Fung-han, the chief executive of the Consumer Council, was quoted in reports saying, “We believe it’s about time to review whether we should regulate claw machine businesses.” Conversely, Jayden Chen, founder of a claw machine rental company based in Singapore, informed the BBC that programmed claw machines are “actually part of the fun.” Mr. Chen elaborated, “The players then feel the excitement and adrenaline, and will keep going. If they are winning most of the time, who would try for a second or third time?” He concluded, “Regulations will kill off the fun element.” In Hong Kong, operators of claw machines are not required to obtain a license to establish their businesses. Regarding the man who sought the waffle maker, he had used a machine advertising “instant prizes,” with the waffle maker displayed among the available rewards. He believed consumers should have the right to choose their prize. Another complainant, a woman, described how the claw would consistently slacken, releasing her desired toy, just as she maneuvered it towards the chute. Her machine featured a “guaranteed grab” mechanism, which would activate for players who had spent at least HK$100 without winning, ensuring the claw maintained its grip only on their subsequent attempt until the toy was retrieved. The woman labeled this practice a “dishonest trade practice.” Reports indicate that claw machines can be configured to have a strong grip for only a limited duration or to release a prize only after a predetermined number of attempts. The council provided another example involving a third complainant who intended to exchange a HK$100 bill for HK$5 coins at a claw machine arcade. After inserting the bill, he received only one HK$5 coin. His request for a refund was denied, and he was instead “compensated” with an equivalent value in play rounds. The man protested this, calling it a case of “forced consumption,” but the operator maintained its decision against a cash refund, stating that the coin exchange “incurred operating costs such as bank fees.” The council advised, “Consumers should assess whether the total amount spent is worth the value of the desired prize.” It also recommended that consumers video-record their gameplay to have evidence available for any potential disputes. Furthermore, the council mentioned suspicions that some claw machines might be utilized for gambling activities and urged consumers to proceed with caution.