Gryla

http://en.wikipedia.org/wiki/Gr%C3%BDla
A public decree was issued in 1746 prohibiting the use of GrĂ½la and the Yule Lads to terrify children.
This Wikipedia entry does not do justice to the Icelandic legend that is Gryla. At Christmastime in U.S., Santa Claus delivers presents from a sack to good children and coal to the naughty ones. At Christmastime in Iceland, Gryla stuffs the naughty children in a sack and takes them home for dinner. To cook them in a stew.
Iceland FTW.
(Image and info thanks to The Engelson Files)