This film is the story of a group of unruly teenagers whose parents send them to a rehabilitation boot camp to turn them around. The camp collects each child individually, then delivers them to the boot camp facility on a remote island in Fiji. There are no walls to stop the teenagers from leaving, but escape is impractical due to the surrounding sea. On arriving at the camp, the teenagers are forced to wear cuffs with sensors around their ankles if they attempt to escape, security will be alerted.
Dr. Hail (Peter Stormare), who runs the camp, forces the teens to work constantly. He has them clean the camp, grow plants, and has them rebuild the camp after it was damaged in a storm. Campers are required to wear color coded t-shirts. First, new arrivals are given black t-shirts. They progress to yellow and then white. The teens earn a white shirt once they have been "corrected." They do not do work; they become staff members and abuse the other inmates and monitor their work. Among the staff is an ex-Marine recruit. He is very tough towards the inmates and makes deals with girls in exchange for sex.
The main teenagers featured are Sophie (Mila Kunis), her boyfriend Ben (Gregory Smith who gets himself sent to the camp to rescue her), Danny (who arrives with Sophie) and Trina, Sophie's bunkmate. As time passes on the island, Sophie rebels more and more against Dr. Hail, and once Ben joins her, the two escape to a nearby island. However, they are recaptured, and Ben is told he will be sent home. One morning, whilst on a run, Logan, the former Army recruit, has the male teenagers go swimming. However, Danny, who can't swim, drowns, and Logan tries to get Ben to help cover it up by threatening him with solitary confinement, but Ben refuses.
Meanwhile, Sophie discovers that Logan has raped Trina, and when Logan is put before the camp to admit responsibility for Danny's death, she reveals this to the rest of the teenagers, many of whom also were offered yellow shirts by Logan in exchange for sex. As the teenagers surround Logan, Sophie turns the attention onto Hail, at which point Ben announces to the shocked teenagers that this isn't the first death to occur on a camp run by Dr. Hail.
The teenagers run amok, burning down the entire campsite, and then go after Logan, who dies when his jeep crashes into a burning building. At this point they turn their attention solely to Hail, who tries to shoot them in the hope that he can restore order. However, after finding out his gun wasn't loaded, he is thrown into solitary confinement, to be left for the police to arrest. As the film fades out we see images of the teenagers celebrating freedom swimming in the ocean. A message also appears on screen stating that since the 1970's, when these type of camps were introduced in real life, over 40 deaths have occurred.