True it is a candy, but if you are refering to that dumb-a$$ song, "Shake dat Laffy Taffy", it is being used as a metaphor for a part of a woman's anatomy.
(I'm surprised they haven't been sued yet)
Just like Chick-o-stick (also a confectionary) is also used in the song as a lame metaphor for a man's penis.
get the picture?