A lap-dancing club in Newquay is to lose its adult entertainment licence, Cornwall Council says.
The council's licensing committee is removing the lap-dancing part of Divas' licence after a day-long review of the club's operating practices.
Committee members saw police footage of dancers said to be breaking "no touching" rules and were told a 17-year-old girl was employed at the club.
The club has not been available for comment.
Community groups also gave evidence to the hearing held on Wednesday.
Rules imposed on the club said dancers had to stay 3ft (0.91m) away from customers.
In its findings, the committee said that it believed the club had failed in licensing objectives in relation to the protection of children from harm.
It said it had done this by employing the 17-year-old, which also showed the club had not ensured an infallible recruitment process was in place.