Hsinchu: The Hsinchu City government announced a new regulation on Tuesday to prohibit claw machine stores from operating within 100 meters of elementary or junior high schools, set to commence early next year after a one-year grace period.

According to Focus Taiwan, the regulation is scheduled to take effect on January 5, 2027. After this date, any claw machine store found operating within the restricted zone will face fines ranging from NT$20,000 (US$634) to NT$100,000. The city government emphasized that regulations concerning claw machine prizes, which demand adherence to product labeling and quality control laws, and ban the use of securities, diamonds, jewelry, tobacco products, alcohol, sex toys, and live animals as prizes, will be enforced immediately, without any grace period.

The statement from the city government urged operators of claw machine stores to promptly make necessary changes to align with the new rules, highlighting that enforcement will be stringent. The claw machine store model has seen a significant rise in Taiwan over the past decade, particularly in small storefronts less appealing for traditional retail purposes.

According to the United Daily News report, by 2025, Taiwan had over 10,000 claw machine stores, with notable concentrations of over 1,600 in Taichung and 1,200 in Taoyuan. These machines often contain items such as stuffed animals, toys, or snacks, attracting children with a NT$10 fee per attempt. However, some machines also feature electronics, phone cases, or household items like laundry pods, tissues, and toothpaste.