How does Santa know whos naughty or nice? Simple: The Elf On The Shelf keeps an eye on things and reports directly to the big guy. She perches upright on a mantel or shelf and monitors behavior; if your elf is not on-site, it could mean that shes at the North Pole filing a report and will most likely find a different vantage point when she returns! Great fun for the holiday season. Each gift set comes with a North Pole girl pixie elf, a hardbound childrens book, and a keepsake box. Your elf can be specially named and registered online to receive an official adoption certificate and letter from Santa! Imported. Cancer and Reproductive Harm- www.P65Warnings.ca.gov. Type: Figurines.