The Commission said it would not be rushed into a decision and that use of a webcam may breach the European Convention on Human Rights, the United Nations convention on the rights of the child and possibly data protection legislation.
Angela McGoldrick, manager of Technotots, said the proposal was included in the planning application for the nursery and that its plans have been known for at least two years.
She said that 50 of the 60 parents with children at the nursery responded to a questionnaire about the webcam, and only two were not in favour because they do not currently have access to the Internet.
In a statement the Commission said, 'This is clearly a serious child protection concern which must be addressed, notwithstanding the agreement of any particular group of parents.'
Judith Gillespie, development manager of the Scottish Parent Teacher Council, strongly opposed webcams in nurseries, saying, 'We have to move away from excessive anxiety about our children. They are not permanently at risk or constantly being ill-treated. The chances of them being harmed in a nursery are minuscule. We have to move back to a system of trust.'
She said that as children grow up they need to grow separately from their parents to a degree, develop their own identity and be able to come out of school or nursery and talk about their day. 'How can they do that when they are being watched by their parents? We have to respect their space,' she said.
Martina Healy, manager of the Cybertots nursery in west London which has had a webcam for three years, said, 'It's not really that parents are logging on for the safety aspect, it's because when they are at work they want to have access to their child's day.'
The nursery employs a computer consultant who checks whether anyone who has not been given a password under an agreement with the nursery has tried to log on to the website. 'I have been assured that no one has ever tried to do this. We have never had a phone call from a parent complaining about the way staff have treated a child,' said Ms Healy.
Each parent of a child at Cybertots is offered a password, which they agree not to hand to anyone else. The agreement also states that not all the images of the children will be positive. 'We tell the parents, and they know this, that children do argue and have fights over toys,' Ms Healy added.
Sara Davey, who manages the Buttercup nursery at West Drayton, Middlesex, said that plans for a webcam there were scrapped after a one-day pilot failed to quell fears among parents that the wrong people would gain access to live pictures of their children.
Michelle Elliott, director of the charity Kidscape, said parents who were so concerned to see their children during the day that they had to log on to the Internet should keep them at home.
'I'm sure this is being done with the best intentions by nurseries, but it's just over the top. You will only get a snapshot and you may see your child being hysterical and get worried, forgetting of course how many times a child might get upset at home. It's technology gone mad.'
The Care Commission said that it had been in contact with the owners of Technotots and 'will be writing to them shortly to advise of the outcome'.