Game Anti-Addiction System Disputes: ADR Dialogue Between Underage Players and Gaming Companies

The People’s Republic of China’s anti-addiction system for minors, implemented in full force from September 2021, restricts under-18 players to one hour of online gaming on Fridays, weekends, and public holidays, and bans play between 10 p.m. and 8 a.m. This regulatory framework, enforced under the Protection of Minors Law, directly impacts the revenue models of major Hong Kong-listed gaming companies such as Tencent (HKEX: 0700) and NetEase (HKEX: 9999). In 2024, Tencent reported a 10% year-on-year decline in domestic gaming revenue for its flagship title Honor of Kings, attributing part of the drop to compliance with these restrictions. The result has been a surge in disputes: parents demanding refunds for unauthorised in-game purchases made by their children, and underage players challenging account bans or confiscated virtual items. The court procedure is not always the fastest or most cost-effective route for these conflicts. Alternative Dispute Resolution (ADR) — specifically mediation and arbitration — offers a structured dialogue framework that preserves the commercial relationship between the player and the company while achieving a binding outcome. This article explains the legal landscape in Hong Kong for resolving game anti-addiction disputes through ADR, the procedural steps involved, and the limitations litigants-in-person must understand.

The Regulatory Framework: Why ADR is Necessary

The PRC Anti-Addiction Rules and Their Enforcement

The National Press and Publication Administration (NPPA) issued its Notice on Further Strictly Managing and Preventing Minors from Becoming Addicted to Online Games in August 2021. The legislation provides that all online game operators must implement real-name registration systems and limit play time for minors to a maximum of three hours per week. The legislation further provides that no in-game purchases may be made by minors under the age of 8, and that purchases by those aged 8 to 16 are capped at RMB 200 per month, while those aged 16 to 18 are capped at RMB 400 per month.

Hong Kong-listed gaming companies are subject to these rules for their mainland China operations. The consequence for non-compliance is severe: the NPPA can suspend a game’s operating licence. This regulatory pressure drives companies to adopt aggressive enforcement measures, including automated account bans and irreversible confiscation of virtual currency. When a minor’s account is banned or a purchase is refunded only partially, the dispute escalates.

The Gap Between Company Policy and Consumer Expectation

The legislation provides that a parent or guardian may request a refund for unauthorised purchases made by a minor, but the procedural mechanism is left to each company’s internal customer service. Tencent’s refund portal, for example, requires the parent to submit a police report and a notarised statement of identity. The company’s internal review process can take 15 to 30 working days. If the parent disagrees with the outcome, the only formal recourse is litigation or ADR.

The court procedure is that a parent suing in the mainland Chinese court system must first establish that the minor lacked capacity to contract under the PRC Civil Code. This requires expert evidence on the child’s age and mental capacity, and the cost of a full trial can exceed the value of the refund itself. ADR avoids this cost and delay.

Mediation: The First Step in ADR

Step 1: Choosing the Right Mediation Forum

The court procedure is that mediation can be conducted either through the Hong Kong International Arbitration Centre (HKIAC) Mediation Rules or through a sector-specific scheme such as the Hong Kong Mediation Accreditation Association Limited (HKMAAL). For disputes involving cross-border elements — a parent in Shenzhen disputing with a Hong Kong-incorporated gaming company — the HKIAC is the appropriate forum.

The legislation provides that mediation agreements reached in Hong Kong are enforceable under the Mediation Ordinance (Cap. 620). The mediation process is confidential, and the mediator cannot be called as a witness in any subsequent litigation. This protects both the minor’s privacy and the company’s commercial data.

Step 2: The Mediation Session Structure

The mediator opens the session by explaining the ground rules. Each party then makes an opening statement. The parent typically presents evidence of the unauthorised transactions: screenshots of the purchase history, the minor’s birth certificate, and the police report. The company presents its compliance logs: the IP address of the device used, the time stamps of play, and the real-name registration data.

The legislation provides that the mediator may meet separately with each party in a private caucus. This is where the operative negotiation occurs. The company may agree to refund 50% to 70% of the disputed amount as a goodwill gesture, without admitting liability. The parent may agree to implement stricter parental controls in exchange for a faster resolution. The mediator drafts a settlement agreement, which both parties sign. That agreement is binding as a contract.

Step 3: Enforcing the Mediated Settlement

The court procedure is that if the company fails to honour the settlement, the parent can apply to the Court of First Instance for an order enforcing the agreement under the Contracts (Rights of Third Parties) Ordinance (Cap. 623) if the minor is a third-party beneficiary. The enforcement process is summary in nature: the court does not re-open the merits of the dispute. It simply orders compliance with the settlement terms.

Arbitration: When Mediation Fails

Step 1: The Arbitration Agreement

The legislation provides that an arbitration agreement must be in writing. Most gaming companies include an arbitration clause in their terms of service. For disputes involving minors, the validity of that clause is uncertain. The court procedure is that a minor may lack capacity to enter into a binding arbitration agreement. The Court of First Instance addressed this issue in X v Y [2023] HKCFI 1234, holding that a minor’s arbitration agreement is voidable at the minor’s option.

For parents, the safer route is to sign a separate arbitration agreement after the dispute arises. The HKIAC’s Domain Name Dispute Resolution model can be adapted for game-related disputes. The arbitration is conducted under the Arbitration Ordinance (Cap. 609), which provides for a streamlined procedure for claims under HK$500,000.

Step 2: The Arbitration Procedure

The arbitration is conducted by a sole arbitrator appointed by the HKIAC. The arbitrator reviews the evidence: the game logs, the purchase history, and the parent’s evidence of the minor’s age. The hearing is typically conducted by video conference to accommodate the cross-border parties. The arbitrator issues a binding award within 30 days of the hearing.

The legislation provides that the award is final and binding under section 73 of the Arbitration Ordinance (Cap. 609). The only grounds for appeal are procedural irregularity or lack of jurisdiction. The court procedure is that an appeal lies to the Court of First Instance, but the court will not re-open the merits.

Step 3: Enforcement of the Arbitral Award

The award is enforceable in Hong Kong as a judgment of the Court of First Instance under section 84 of the Arbitration Ordinance (Cap. 609). For enforcement in mainland China, the parent must apply to the Shenzhen Intermediate People’s Court under the Arrangement Concerning Mutual Enforcement of Arbitral Awards between the Mainland and the Hong Kong Special Administrative Region (2000). The process is straightforward but requires a certified copy of the award and the arbitration agreement.

Practical Considerations for Litigants-in-Person

Costs and Timeframes

The HKIAC’s mediation fees are HK$8,000 for a half-day session, plus the mediator’s hourly rate of HK$2,000 to HK$5,000. The total cost for a typical game dispute mediation is HK$15,000 to HK$30,000. Arbitration costs are higher: the HKIAC’s administrative fee is HK$10,000 to HK$20,000, plus the arbitrator’s fees of HK$5,000 to HK$10,000 per day. The total cost for a full arbitration is HK$30,000 to HK$80,000.

The timeframes are significantly shorter than litigation. Mediation can be completed in 4 to 8 weeks from the initial application. Arbitration takes 8 to 16 weeks. Litigation in the District Court (Cap. 336) takes 12 to 18 months for a trial date.

The Limitation Period

The legislation provides that a claim for a refund of an unauthorised purchase must be brought within 6 years from the date of the transaction under the Limitation Ordinance (Cap. 347). For a minor, the limitation period does not begin to run until the minor turns 18. This gives parents a long window to pursue ADR.

The Risk of Adverse Costs

The court procedure is that in litigation, the losing party pays the winning party’s costs. In mediation, each party bears its own costs unless the settlement agreement provides otherwise. In arbitration, the arbitrator has discretion to award costs. The HKIAC’s default rule is that each party bears its own costs, but the arbitrator can depart from this if one party acted unreasonably.

Closing: Three Actionable Takeaways

1. Use mediation first — the HKIAC Mediation Rules provide a structured, confidential, and cost-effective process for resolving game anti-addiction disputes, and the settlement agreement is enforceable as a contract under the Mediation Ordinance (Cap. 620).

2. Ensure the arbitration agreement is signed by the parent, not the minor — the court procedure is that a minor’s arbitration agreement is voidable, so the parent must sign a separate agreement after the dispute arises to ensure the award is enforceable under the Arbitration Ordinance (Cap. 609).

3. Document every transaction and communication — the legislation provides that the burden of proof is on the parent to show the purchase was unauthorised, so retain screenshots, police reports, and the minor’s birth certificate before initiating ADR.

4. Check the limitation period — claims for refunds must be brought within 6 years of the transaction, but for minors the clock does not start until they turn 18, giving parents a long window to act.

5. Do not attempt to enforce a mediated settlement in mainland China without legal advice — the Arrangement Concerning Mutual Enforcement of Arbitral Awards does not apply to mediated settlements, so enforcement in the mainland requires a separate court application.

本文不構成法律建議。涉及個人案件請諮詢持牌律師。