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Budget retailer Poundland has been hit with a backlash after calling its new M&S's knock-off 'Nutters'.

The confectionery is packaged in a similar way to the famous chocolate-covered peanuts, and is being sold across Poundland's 869 UK stores.

Mental health campaigners have branded the treat "offensive", however, and have called for the product to be removed.

'Nutters' features three peanut-shaped characters in front of a yellow background. They appear to be cross-eyed and have their mouths wide open. Some believe the treats reinforce mental health stigma, while others believe the reaction has been a little 'over the top'.

(Image: Twitter)

The sweets have been on sale in Poundland shops for the past 12 months. MP Norman Lamb, whose son Archie, 29, has faced mental health issues in the past, has urged the discount chain to apologise.

The North Norfolk constituency Liberal Democrat told the Sun : “There is a stigma attached to mental health and we need to be careful about the way we talk about it.

“The product needs to be quickly withdrawn from sale and Poundland needs to apologise.”

And Dr Sophie Dix, of charity MQ: Transforming Mental Health, called the imagery used on the product “distressing”.

“Such offensive language and distressing imagery is a real step backwards,” she said.

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A spokeswoman for Poundland said the company was “saddened” by the negativity surrounding 'Nutters' and confirmed that the line is being “assessed”.

She told the Standard : “These nut chocolate bags have been a popular item over the last 12 months but we are saddened to hear that the item has caused offence.

“We take all feedback on board and have committed to assessing this line at its next formal review.”