Its not just about urban legends. Through fasting and prayer, the Lord Jesus has revealed to me that this company is in the hands of the devil and has many in bondage from the freedom of Christ. I would recommend being discrete about this and if possible dispose of all Hello Kitty merchandise.
In some urban legends, Hello Kitty was apparently started when a mother of a child dying made a pact with the Lord of the Underworld. She would start a toy company if the devil spared her child's life.