Butterscotch is a type of hard confectionery with a distinctive colour which does contain butter, as well as brown sugar and possibly other ingredients, although it doesn't contain scotch. However, it is not an ingredient in butterscotch pudding.
Butterscotch pudding does contain butter and brown sugar, too, and the term in this case is used to refer to the flavour of the pudding, which is similar to that of butterscotch. When butterscotch itself is made, the sugar is boiled to the soft crack stage, but in butterscotch pudding, the brown sugar is simply mixed with butter, along with other ingredients, relying on the cooking process itself - usually baking - to get the butterscotch taste.
Butterscotch may be a hard sweet, but butterscotch pudding is a baked dessert, although one with a similar taste and often a similar golden colour, thanks to the brown sugar and butter.
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