KUALA LUMPUR, (Reuters) – Ferrero, an Italian confectionary giant, said that it would stop sourcing palm oils from Sime Darby Plantation. The U.S. Customs Service found that the Malaysian planter had used forced labor.

Ferrero said that Ferrero would comply with U.S Customs and Border Protection’s decision. Ferrero uses palm oil in Ferrero Rocher chocolates and Nutella spread.

According to the company, it had asked global suppliers not to supply palm oil or palm kernel oil from Sime Darby.

Ferrero purchases very little edible oil from Sime Darby but its decision – after similar halts by Hershey Co (NYSE: General Mills Inc (NYSE:) is another reputational hit for Sime Darby as well for Malaysia. Malaysia has been facing mounting accusations of abuses by migrant workers across a variety of industries.

Sime Darby said to Reuters that the company has made progress in areas related to human rights. All stakeholders committed towards sustainability can be sure of Sime Darby’s leadership. Ferrero was not its customer, it said.

Ferrero claimed it does not purchase directly from Malaysian companies, but they do supply 0.2% of its palm oil volume.

The U.S. Customs and Border Protection announced in January that there was sufficient evidence to prove that Sime Darby had used “forced labour indicators”.