YOUTUBE has been warned it is in danger of becoming a "sweet shop for paedophiles" as the site profits off advertisements on sick videos of kids.

Big brands have pulled their advertising from Youtube on the eve of Black Friday after it was revealed their advertisements were running before videos that can be used by paedophiles to view and share more links to abusive material.

3 Youtube has been criticised for allowing inappropriate content to be shared Credit: Alamy

The advertisements allow those who publish the videos to be paid - with a creator typically receiving 55 per cent of all revenue, with the remainder going to Youtube.

Tim Loughton, a Tory member of the home affairs select committee, told The Times: "Yet again it appears that YouTube’s rhetoric about taking child safeguarding seriously nowhere matches its actions.

"Their platforms are in danger of being used as a sweet shop for paedophiles."

The clips can attract millions of views, with people able to watch young girls in their underwear, in bed and doing the splits.

3 Adidas said the situation was 'completely unacceptable' Credit: Alamy

3 Amazon was also named as a company that had advertisements used in the exploitative content Credit: Alamy

Big names including BT, Adidas, eBay, Amazon, Mars and Talktalk have been slammed for allowing their advertisements to run before the clips - but many have already yanked their campaigns from Youtube.

Adidas said the situation was “completely unacceptable”, with Diageo issuing an "immediate stop" on their advertising.

Tony Stower, public and policy affairs manager at the NSPCC, said: "This is yet another example of why it is not good enough for sites like YouTube to be marking their own homework.

"Government intervention is vital to protect children from the moment they sign up to social networks."

It comes after it was revealed children are being "exploited" by parents who film them in discomfort and pain.

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While many of the videos targeted at children are perfectly innocent, some disturbing clips are cropping up on YouTube.

Among them are vlogs, starring children but filmed and set-up by parents, where kids are visibly in distress, being sick or are in pain.

A dad was also disgusted after his three-year-old son inadvertently watched a fake episode of Peppa Pig featuring a paedophile dentist and mentions of a "plastic penis".

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