The Chattanooga Police Department Vice Unit made several arrests at the Rainbow Internet Cafe at 5018 Rossville Blvd. after receiving complaints about alleged illegal sexual activity going on inside the club.
Undercover detectives who enterd the club on Thursday said they observed four males engaged in sexual activity.
They were charged with indecent exposure.
The owner of the business, D. Simon, 60, and her employee, Shon Medley, 37, were cited on city charges of not having an adult entertainment license or permit.
Officers said the business had booths that were each playing pornographic movies.
There were also two hot tubs inside the club.
Charged with indecent exposure were David M. Franklin, 48; Walter K. Nimmo, 47; Rickey E. Doss, 43, and Sanford M. Garren, 36.
Detectives also conducted an operation at Cinema One at 4100 Rossville Blvd.
Undercover officers entered the establishment, but found no sexual activity going on.
Two employees were cited, however, for not having adult entertainment permits.
They are Curtis Moore, 36, and Pamela Kilgore.