Baptist World Aid Australia's '2024 Ethical Fashion Report' assessed 120 companies on their efforts to mitigate against the risks of forced labour, child labour and worker exploitation in their supply chains, as well as protect the environment from the harmful impacts of the fashion industry. Assessment criteria fall into five main categories: policy & governance, tracing & risk, auditing and supplier relationships, worker empowerment and environmental sustainability. This company ranked in the bottom 20%, with a score of 3/100.

In 2025 the Federal Court of Australia to ordered this company to pay $14 million in penalties for selling non-compliant button battery products. City Beach admitted that, between June 2022 and October 2024, it had supplied products that that did not comply with the button battery safety standard on more than 54,000 occasions. The products included toys, digital notepads, keyrings, lights and light-up Jibbitz accessories for Crocs shoes. The Court noted that many of these products were marketed or intended for children.