I watched a video that showed just how many famous and beloved fictional characters and advertising mascots were really creepy when they were first created - The Michelin Man originally looked like something out of a horror B-movie and smoked a cigar, the early Mickey and Minnie Mouse costumes at Disneyland were not as cuddly and friendly-looking as they are today, and Mr. Clean was originally played by a live actor who was a tall bald man with an earring and wore a suit that made him resemble that Hitman game character.
But the one character that I found both disturbing and guiltily amusing was an old mascot created by Jim Henson for Wilkins Coffee named, well, Wilkins. Wilkins looked and sounded a bit similar to Kermit the Frog and was cute, cheerful, and loved Wilkins coffee. But he had a "friend" named Wontkins, whom Wilkins would sadistically abuse or murder every time Wontkins said he didn't didn't like the coffee. Poor Wontkins would get blown up, cut in half, shot onscreen, (nearly)decapitated, or just get cake shoved in his face and coffee poured on his head by Wilkins. But the ad I found the creepiest was where Wilkins and Wontkins are dressed in fencing suits, and when Wontkins says he still doesn't like the coffee they cut to Kermit-Wilkins cleaning blood(!?) off his sword, saying "Some learn, some don't." The fact they don't show the actual stabbing actually makes it more creepy. How could kids watch these commercials and not be messed up in the head?
Maybe they only showed them late at night, but I don't know. 