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Telstra has been caught out supplying smutty videos through its website WotNext.com.au
Telstra is charging $1 to download "amateur porn" video clips of naked women sunbathing and wrestling, News Limited newspapers reported.
Telstra launched WotNext in January this year, supposedly for young bands to post their music videos and boost their exposure.
However, eight of the 10 most-viewed clips involve women in states of undress.
Family groups have accused the telco of exploiting young internet users and demanded the Rudd government intervene.
"The film clips on the site treat young women as sex objects ... all delivered through a part-owned government communications provider," Women's Forum of Australia director Melinda Tankard Reist told News Ltd newspapers.
The Australian Family Association said that by running the site Telstra was rotting the minds of young men as well as women.
"Telstra are commercially exploiting young people," association spokeswoman Angela Conway told The Daily Telegraph.
"They're deliberately sexualising young people in the most worrying way purely for commercial exploitation."
However, Telstra said the website was not supposed to show porn and had ordered a review into its content guidelines.
"Some of the current videos and the descriptions on WotNext are an unintended consequence of the user generated site and fall short of community expectations," Telstra spokesman Peter Taylor said.
"We share concerns by others and believe it has become a magnet for tasteless video graffiti and we will be undertaking a prompt review of guidelines for posting content."
- AAP