The council is investigating complaints that town taxi drivers have turned down fares because they are not profitable enough.
Erewash Borough Counccil’s licensing team is looking into the tip offs from taxi drivers and residents and says it is an offence for a driver to refuse fares without an acceptable reason.
They have urged residents to contact them if they have been or are refused a fare – giving the name of the taxi company and the plate number, which can be found on the front and back of the vehicle.
Cllr Barbara Harrison, lead member for environment, said: “The vast majority of the taxi trade operate legally and responsibly to provide an essential service to the general public and we know they share our concern about those drivers who, illegally, try to ‘cherry pick’ their fares.
“I can assure the taxi trade and residents that we are taking this problem seriously and we will prosecute any drivers found to be refusing short distance fares.”
The council’s licensing team plan to undertake test purchase exercises if the problem continues in a bid to identify any drivers who break the law in this way.
Any drivers prosecuted for this offence would face a £500 fine and the council will review their licence.
To report a problem call the licensing team on 0115 907 3120.