Yahoo last week made the decision to shutdown its public chat rooms. The company said adult members in various chat rooms were promoting sexual activities with minors.

Yahoo took the necessary action when a TV station KPRC-TV reported such incident as one of its stories.

According to the TV station, the chat rooms featured titles such as "Girls 13 and Under for Older Guys" and "Younger Girls for Older Guys".

After the story was featured on air and advertisers learned that their ads were being displayed on questionable content, more than a few including Pepsi, State Farm Insurance and Georgia-Pacific pulled their ads from the particular section.

Yahoo spokeswoman Mary Osako did not comment much on the story, but said Yahoo is working on improvements to meet its content policy and to make sure something like this does not happen again.

Pepsi said the company was notified of the situation in April, and it worked with Yahoo to remove its ads from the chat rooms. Pepsi is currently an active advertiser on Yahoo. The status of other advertisers that pulled their ads due to the story is currently unknown.

Yahoo said its user policy clearly states that users are not permitted to harm minors in any form or publish obscene content that is illicit, obscene or questionable.

The search company said its other chat rooms are still available online.