A group of young settlers is working on a project to "warn the public" against buying from businesses that employ Arabs, the Israeli newspaper Haaretz reported Monday.

Around 20 people, many of whom are from the notorious Yitzhar settlement in the northern West Bank, have been touring Jerusalem neighborhoods and making a list of businesses with Arab employees, Haaretz reported.

Meir Ettinger, 19, told police he was working for "Hebrew Labor" after a merchant reported his suspicious behavior. Police have since questioned four other men working on the same project, the report said.

Moshe Ben Zikri, a resident of Jerusalem working on the project, told Haaretz: "A booklet with a list of places that employ Arabs will be published soon."

He added: "That will be followed by hanging up posters and signs with these lists in the streets - just so that the public will know and be cautious."

In August, Israel slapped restraining orders on 12 settlers living by Yitzhar accused them of torching Palestinian mosques, vehicles, and buildings.