In the campaign, Sweeney appears dressed as the famous Whoville character while carrying a stack of Christmas presents.
One look features a plunging plaid tank top paired with matching shorts, while another showcases a flannel pyjama set.
Fans have argued that transforming a character played by a child into a lingerie-inspired campaign was inappropriate.
The controversy comes at a time when Sweeney is already facing heightened scrutiny over her public image and business ventures.
Just weeks earlier, the actress was criticized for a revealing advertisement promoting Novig, a sports prediction market in which she reportedly holds an ownership stake. The commercial featured Sweeney in a series of provocative scenes, including moments where she covered herself with footballs and posed on a basketball hoop.
That campaign prompted criticism from female athletes who argued that it reduced women to their physical appearance rather than highlighting their achievements.
Despite the criticism, Sweeney has built a reputation for refusing to back down from public scrutiny.
Throughout her rise to stardom, she has frequently addressed negative commentary head-on and continued to pursue acting, business, and fashion opportunities on her own terms. While the latest backlash has generated headlines, supporters argue that much of the criticism reflects a broader debate about celebrity branding.
Sweeney has also faced growing attention over her association with entertainment mogul Scooter Braun. The billionaire entrepreneur remains one of the industry's most controversial figures due to several high-profile disputes throughout his career, including the widely publicized conflict surrounding Taylor Swift's music catalogue.
As a result, some critics have questioned Sweeney's decision to align herself professionally with Braun.
