I was in the break room at work and the discussion on telling kids there's a santa came up. My position is that it's lying to your children and how can you get mad when they lie if you lied to them about santa, bunny rabbit, tooth fairy, and etc.....
Some kids are crushed when they find out there is no santa, to them he's real and they believed in him as real being. I read one testimony where it made a boy start to question if Jesus is made up too, this was after he found out about santa.
Besides the lie part, it goes into the area of Idolatry.
They teach he sits up in the north and knows if you've been good or bad. That's deity folks! Only God knows are works, only he sees all.
Then Santa rewards according to your works. Sound familier? Sure does:
Prov 15:3
3 The eyes of the LORD are in every place, beholding the evil and the good.
KJV
Eccl 12:14
14 For God shall bring every work into judgment, with every secret thing, whether it be good , or whether it be evil .
KJV
So I have to a conclusion that santa is outright idolatry. Sad indeed kids are being taught this stuff. I heard a lady speak about asking the Lord forgive you and do it.