The city's highest officials have taken notice. Bill Bratton, the police commissioner, has expressed concern about the "Elmo craze". Mayor Bill de Blasio says the behaviour of the characters should be regulated.
Men dressed as Elmo and Batman rejected the idea that they are no more than panhandlers in fancy dress.
"This is not a problem for me, this is good," Victor Aldea of Passaic, New Jersey said of the fliers after lifting up his Elmo head. He said he and other performers never insisted on a tip, and would settle for a child's smile.
Jose Escalona-Martinez said the US Constitution gives him the right to wear whatever he likes in Times Square - a Batman costume, in his case - and questioned police priorities.
"If they want to do that job, passing out fliers, not looking for real crimes, it's fine with us," he said.
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