The short video, "Hakani," has been watched more than 350,000 times on the YouTube video-sharing website.
It depicts scenes of Indians in an isolated forest village digging graves and burying several live children in them. The "Hakani" campaign also has a website and a group on networking site Facebook with more than 13,000 members.
London-based Survival International said in a statement the film is "faked, that the earth covering the children's faces is actually chocolate cake, and that the film's claim that infanticide among Brazilian Indians is widespread is false."
"People are being taught to hate Indians, even wish them dead," said Survival's director, Stephen Corry.
Below: Stereotypical Amazon Indians who menace white people and probably kill babies.