I was just walking through the Times Square area yesterday on my lunchbreak, and they had Elmo and a 4th of July Mickey and Minnie Mouse walking around. They're just out to make money for the most part. They carry little sacks with them and charge $10 a picture but like Heralde said, try to steer clear of them anyway. Some of them are a little looney. Most of the promotional stuff in Times Square is a rip off.
About a year ago too there was a shooting involving these guys who go around and sell CDs and ask tourists who don't know any better their name and pretend they're autographing it for you. One guy who didn't, the guy selling the CD turned a gun on him.