The Santa hat is a tradeable discontinued item. Santa hats appeared randomly on the ground all over RuneScape on 25 December 2002, when players could pick up as many as they wanted. They are now a purely cosmetic item having the stat bonuses removed upon transition to Runescape 2, and no requirement to equip.
Although Jagex described the hats as "just a bit of fun" at the time, they have since become an expensive and much-coveted item amongst players.
Official meeting point for the product committal is:
World 1 West Varrock Bank
Additional Downloadable Content