Lululemon will commence an independent investigation of one of its factories, following a report by The Guardian.
The activewear giant told media outlets the factory, located in Bangladesh, will be subjected to a review.
The newspaper report included claims female workers were abused on a regular basis.
The incident serves as a timley reminder of new legislation around garment workers in Australia.
"Ethical sourcing and supply chain management are critical issues in the fashion industry," the report read.
"As brands experience pressure to produce high volumes of affordable clothing using complex global supply chains, it can be difficult for businesses to monitor their suppliers and prevent exploitation."
A recent report by the Corporate Human Rights Benchmark measured the performance of 30 of the world's largest apparel companies against a variety of human rights indicators, and gave the apparel industry a disappointing average score of 26.7%.
The Federal and NSW Acts provide a framework to support improvements in this area.