One person wrote on Twitter, "I applaud Allen's bold move to change 'Redskins' to 'Red Ripper' to honour a Ukrainian serial killer who only murdered 56 women and children".
"It's a ****ing lolly," another wrote. "It's named redskins cause that's the colour of your tongue when you eat too many."
"Which genius at the Allen's lollies marketing department came up with the idea to rename Redskins to the nickname of Russian's worst serial killer???" another demanded.
Nestle's Allens Red Skins and Chicos lollies will be rebranded after the confectionery brand announced it would rename the products due to undertones which are "out of step with the company's values".
Under their new titles, Red Skins will be known as Red Ripper and Chicos will become Cheekies.
Nestle general manager of confectionery Chris O'Donnell said the renamed products will appear on shelves early next year.
"Nestle has an unwavering commitment to upholding respect for our friends, neighbours and colleagues.
"We hope Australians will support the evolution of these two much loved lollies – while the names are new, the lollies themselves remain unchanged.
"We will keep pack changes simple to help lolly lovers find their favourites easily."
The intention to change the names of the popular sweets was announced on June 20, with Nestle vowing to "move quickly" on the issue.
The word "Redskins" has previously been used as a derogatory term for Native Americans, while Chico, which in lolly form is a brown, chocolate flavoured jelly baby, is a Spanish word that means boy or kid.