The Internet Eyes website will offer up to £1,000 if viewers spot shoplifting or other crimes in progress.
The site's owners say they want to combine crime prevention with the incentive of winning money.
But civil liberties campaigners say the idea is "distasteful" and asks private citizens to spy on each other.
The private company scheme - due to go live in Stratford-upon-Avon in November - aims to stream live footage to subscribers' home computers from CCTV cameras installed in shops and other businesses.
BBC
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