Surge in complaints about claw machines raises consumer concerns

The Hong Kong Consumer Council received 42 complaints about claw machines in the first 11 months of this year, a significant increase compared to 14 complaints during the same period last year and a yearly average of 3 to 16 cases from 2021 to 2022.

Common Complaints Include:

"Guaranteed Win" Mechanism: A customer reported that the claw would drop the prize at the top of the machine unless a certain spending threshold were reached, triggering a "guaranteed win" mechanism. The customer criticized this setup, claiming it made winning outside the mechanism nearly impossible. The store also failed to disclose information about this mechanism.

Misleading Prize Display: Another customer spent nearly HKD 500 expecting to win a waffle maker but only received small trinkets. The machine's "direct prize" feature lacked clear labeling and displayed no redemption terms. The customer accused the shop of misleading practices by showcasing unattainable prizes.

Coin Exchange Issues: In one case, a customer inserted a HKD 100 bill into a coin exchange machine but only received one HKD 5 coin. When requesting a refund, the shop refused and offered only game credits instead, which the customer felt was coercive.

The Consumer Council noted that in 2022, courts ruled claw machines do not meet the definition of "entertainment" under the Places of Public Entertainment Ordinance, meaning they do not require licenses or regulation. Recently, "luck-based" machines offering expensive prizes or cash have raised concerns about gambling. The police have stepped up enforcement against machines with dice-like mechanisms for prize distribution.

The Council advises consumers to be cautious when using these machines, as some practices may border on illegality or deceptive conduct.

Related News:

All 12 fabric fragrance beads found to contain allergenic fragrances: Consumer Council

MOU for collaboration on cross-border consumer disputes signed by HKCC & TCC

HK Consumer Council urges greater transparency as supermarket products shrinkage