This is not a scam - what it is though, is kind of a tourist trap. Google has a few photos from years ago when it was once a more authentic handicrafts market. However, I'm not sure if it's still this way. This is the original, older area comprised of small stalls, many of which were closed on a Sunday afternoon. I did find one selling what I was looking for - painted pieces from Oaxaca (Was it authentic? I'm not sure. The quality was not as good as elsewhere). In addition, they had the usual touristy souvenirs and merchandise. It looks like it was bigger at one point but shrank after the newer, shinier place opened - I would avoid that place even more!! The prices here are on par with the Playa del Carmen markets. If you're in town for a day and looking for a shirt, small trinket or basic souvenir, this will do. Otherwise, I recommend wandering away from this area for better deals.
Now, next to this is the newer and shinier market essentially geared towards tourists. When we were dropped off, we were immediately set upon and handed off to different guides pushing different shops. Despite explaining what we were looking for, they still tried to sell alcohol, jewelries etc. Our whole ordeal in the new area lasted 5mins and even that was too long. This type of shopping is not for me but if you want a one stop shop and/or want to experience the hustle, this is for you. read more