I know that some NPCs don't allow scavenger hunts anymore. Personally I don't see how it could be hazing, but I can see how it might be a risk management issue.

When I was a pledge, my Frat Ed advisor said that they did scavenger hunts in the early 90s. When IHQ found out, they weren't too pleased.

Locals can do scavenger hunts if they want as long as they're not doing anything illegal. They don't have to answer to a higher authority.