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Pedicab drivers in New York City are exploiting the Square mobile payment app to overcharge tourists, often without their knowledge until they review their credit card statements. The app allows drivers to add undisclosed fees, claiming transaction fees or taxes, to inflate the charge. This scam particularly targets vulnerable individuals such as late-night revelers. Laramie Flick, acting president of the NYC Pedicab Owners Association, criticized Square for making it too easy for dishonest drivers to commit fraud and difficult for victims to track down the perpetrators. Recently, a pedicab driver charged a Japanese couple $720 and attempted an additional $616 charge, which was blocked by the credit card company. The city’s Department of Consumer Affairs is seeking to subpoena Square for the driver’s details, though Square maintains that victims’ banks can contact them for transaction details but not the fraudsters’ contact information. Square asserts its commitment to collaborating with cardholders, banks, and authorities to address fraud and protect consumers.

For more information:

https://nypost.com/2013/07/20/smartphone-app-lets-pedicabs-pick-your-pocket-and-pedal-away-scot-free/

Two Japanese tourists, Chisa Niwa and her husband Hiroki, were significantly overcharged by a pedicab driver in New York City, paying $720 for a 20-minute ride that should have cost about $50. The incident occurred on their first day in the city when they tried to travel from the NBA Store on Fifth Avenue to the Knickerbocker Bar and Grill. After being unable to secure a yellow cab, they opted for a pedicab. The driver, misleadingly pointing to a $5 line on his price board, later charged them an exorbitant fee upon arrival. Additionally, an attempt to charge another $616 was fortunately blocked by their credit card company. The Department of Consumer Affairs is now seeking legal action to identify the driver through Square, the smartphone credit-card reader used for the transaction. This event marred the tourists’ excitement for their trip, casting a negative shadow over their experience. New regulations that require pedicab drivers to clearly display rates and charge per minute are hoped to prevent such scams in the future.

For more information:

https://nypost.com/2013/07/19/fleeced-pedicab-driver-charges-japanese-tourists-720-for-20-min-trip/

Authorities are investigating a case where a pedicab driver in New York City charged a Japanese couple $720 for a 20-minute ride from Midtown to the Village, a journey that should have cost about $50. According to a report by The New York Post, the driver initially indicated the ride would be $5, but upon arrival, demanded $520. The couple, unfamiliar with the local pricing, paid the amount using a credit card. They later discovered not only the $720 charge but also an attempted additional charge of $616, which did not process. The Department of Consumer Affairs is now trying to locate the driver using smartphone credit card reader data. Laramie Flick, acting president of the NYC Pedicab Owners Association, described this incident as one of the worst rip-offs he had encountered.

For more information:

https://www.nbcnewyork.com/news/local/pedicab-driver-rip-off-charge-couple-720-dollars-japanese-tourist-consumer-affairs/1981369/

Here are five strategies to avoid being scammed by pedicab drivers in New York City, especially given the recent regulations requiring clear posting of per-minute rates:

1. Educate Yourself on Local Laws: Before taking a pedicab, familiarize yourself with the city’s regulations, which mandate that pedicabs can only charge a per-minute rate with no hidden fees. Print out and carry the Department of Consumer Affairs guidelines to show to the driver if necessary.
2. Choose Experienced Drivers: While this advice could be seen as problematic, some suggest opting for older, more experienced drivers who may be less likely to overcharge. However, this advice should be approached with caution to avoid discriminatory practices.
3. Record the Driver’s ID: Make a note of the driver’s identification number or name. Letting the driver know you have this information might deter them from attempting to overcharge you.
4. Be Vocal If Scammed: If you suspect you’re being overcharged, don’t hesitate to confront the driver loudly or call for police assistance. Making a scene might prompt the driver to relent rather than risk a public confrontation.
5. Consider Alternatives to Pedicabs: Given the potential for scams and the general inconvenience and discomfort of pedicabs, consider other forms of transportation around the city, such as walking, taking a bus, or a subway, which might offer a more reliable and pleasant experience.

These tips aim to protect tourists and residents from falling victim to overcharging practices that have been a significant issue with some unscrupulous pedicab drivers in New York City.

For more information:

https://slate.com/news-and-politics/2013/07/new-york-city-pedicab-scam-how-not-to-get-scammed-by-a-pedicab-driver.html

New pedicab regulations designed to prevent scams and enhance rider transparency have taken effect in New York City. Under these rules, pedicab drivers are required to prominently display their rates on their carriages and time rides using stopwatches calibrated by the Department of Consumer Affairs. The law mandates that charges be calculated by the minute, eliminating per-passenger surcharges and other additional fees. Each operator must also provide information cards that act as receipts, detailing the driver’s name, rate, and contact information. These measures, supported by the NYC Pedicab Owners Association, were introduced following numerous complaints about excessive charges, including rides costing up to $400 for just 14 blocks, and the addition of unjustified surcharges. On the first day of implementation, rates observed in areas like Times Square and Central Park ranged from $2.50 to $4.75 per minute. Pedicab driver Irving Ferreira expressed support for the new rules, noting that they would curb the exploitation prevalent among a minority within the profession.

For more information:

https://nypost.com/2013/07/13/city-rolls-out-no-cam-pedicab-rules/

New pedicab regulations have taken effect in New York City to prevent riders from being overcharged. These rules require pedicab drivers to clearly display their prices, use stopwatches calibrated by the Department of Consumer Affairs to time rides, and charge solely by the minute without any per-passenger surcharges or additional fees. These measures were introduced following numerous incidents where tourists faced exorbitant charges for short rides, including a case where Japanese tourists were charged $720 for a 20-minute ride, a gross overcharge from the displayed $5 rate.

The NYC Pedicab Owners Association supports these changes, emphasizing that they will make it harder for unscrupulous drivers to exploit riders with “phantom charges” on top of already high fees. The city’s new law also requires that each pedicab driver carry information cards that act as receipts, providing transparency about the driver’s identity and rates. The city will enforce these rules strictly, with penalties reaching up to $1,000 for repeated offenses. These regulations aim to restore fairness and transparency to the pedicab industry, which has been plagued by deceitful pricing practices.

For more information:

https://www.cbsnews.com/newyork/news/new-pedicab-rules-to-prevent-riders-from-getting-ripped-off-take-effect/

In Midtown Manhattan, pedicab pricing can feel like the Wild West due to its unregulated nature. A striking example occurred last August when a tourist was charged $442 for a 15-minute ride that spanned less than a mile. Initially, the pedicab driver quoted a dollar per block, only to reveal a $100 minimum per person at the trip’s end, then requested a tip. This incident underscores the unpredictability and potential for exploitation in pedicab fares.

To address these issues, New York City, collaborating with pedicab representatives like Laramie Flick, president of the pedicab owners association, has devised new regulations. Set to take effect next week, these rules mandate that drivers post their rates clearly and charge consistently per minute, applying uniformly to all customers. While Flick supports these changes, not all drivers are pleased. Ibrahim Donmez, a veteran driver, argues for rate flexibility based on factors like route difficulty, weather conditions, or passenger count, emphasizing the bespoke nature of a human-powered service like pedicabs. These new regulations aim to protect tourists and ensure a fairer transaction process.

For more information:

https://www.npr.org/sections/money/2013/07/09/199048226/how-to-spend-442-on-a-15-minute-cab-ride