It has now pulled these items from sale.
The designs, created by KA Designs, were allegedly intended to reclaim the Nazi symbol – which was originally used by Hindus and Buddhists - as a “positive” image.
The Company said: “Here at KA we explore boundaries. We push them forward. Let's make the Swastika a symbol of Love and Peace. Together, we can succeed.”
The brand also produced a video explaining their motive for designing the items.
It said: “The swastika is coming back,” and argued that the Nazis “took the swastika, rotated it 45 degrees, and turned it into a symbol of hatred, fear, war, racism, power.
“They stigmatized the swastika, they won, they limited our freedom, or maybe not?”
Dr Efraim Zuroff of the Simon Wiesenthal Center said the website was “outrageous” for selling the items.
Dr Zuroff, the group's Israel director, said that the attempt to turn the Nazi image into a positive one was “naïve in the best case, and insidious in the worst case.”
He added: "Teespring's lack of sensitivity on these issues is repulsive and the company's obvious goal is to shock people and reap the possible financial rewards, under the guise of their supposed creativity. In our opinion, such creativity deserves censure and boycott rather than any type of success and admiration."
Adding to the criticism of the items, Arsen Ostrovsky, executive director of the Israeli-Jewish Congress described the items as “obscene and disgusting”.
Teespring said it had no link with KA Designs and apologised for the T-shirts appearing on the website.
It said it would be making a donation to Yad Vashem "to stand in solidarity with those who took offence to this design".
In a statement, the company said: "KA Designs is in no way affiliated with Teespring and does not reflect the company's views. The moment Teespring was made aware of the design, it was removed from the site. No T-shirts were sold to consumers and Teespring did not profit from this design in anyway."
The statement added: "Teespring would like to apologise for this incident and is taking action to ensure this does not happen again in the future.
