Mattel Inc. says it will stop using wood products from a Singapore company that's been accused of clear-cutting rain forests in Indonesia.

The toymaker says it's told packaging suppliers to stop using wood products from Asia Pulp & Paper while it investigates deforestation allegations.

The environmental group Greenpeace has been waging a campaign against Mattel for its packaging practices. A protest was held this week outside the company's El Segundo headquarters.

An APP executive, Ian Lifshitz, tells the Los Angeles Times that the clear-cutting allegations are baseless and the company is confident that Mattel's investigation will show its packaging is mostly from recycled sources.

Information from: Los Angeles Times

Copyright 2011 The Associated Press.