Shields is also known to be controversial, his work including a photo of a nude black man hanging a KKK member, shots of Glee's Heather Morris in which her face was covered in bruises and images of a $100,000 Birkin bag on fire.
The comedian expressed her regret in an emotional video that she tweeted on Tuesday.
Meanwhile, TMZ also reports that Trump's eleven-year-old son Barron thought the photo was legitimate.
The account did not specifically say if this tweet was directed to Kathy Griffin, but many online assumed it was.
The comedian posted an image in poor taste which showed her stood holding what appeared to be a likeness of Donald Trump's bloodied severed head. I crossed the line. I move the line and then I cross it. "In response, Squatty Potty has suspended its ad campaign featuring Ms. Griffin", Edwards said in a statement.
"Kathy Griffin is not, nor ever has been Squatty Potty's spokesperson", Squatty Potty said in a statement.
"The image is too disturbing, it wasn't amusing". See the photo at the bottom.
Publicists for Griffin did not immediately respond to a request for comment from The Associated Press.
Earlier in the day, Griffin defended the photo shoot with since-deleted tweets, calling Shields a "great photographer". "We are evaluating New Year's Eve and have made no decisions at this point".
"I beg for your forgiveness", she added. "It wasn't amusing. I get it".
The video had apparently been removed from Shields' blog by late Tuesday.
Now, she says: "I sincerely apologize".
I am sorry. I went too far.
Speaking with MSNBC's Chris Matthews about Trump's first address to a joint session of Congress, she said "he just says one hateful thing after the other".