Bonds has been accused of adultification in a complaint issued to the advertising watchdog.
The email advertisement features nine images of women and children wearing Bonds' products including yoga pants, crop tops, romper suits, a dress and a jacket.
The text above the images reads, "Double Tappiness. Insta-worthy styles to steal via Social".
Complainants alleged the campaign breached standards codes.
"There were two girls, one about six and the other about eight years old, advertising appropriate clothing, however both their poses was unduly sexualised.
"I am a teacher and very aware of the sexualisation of children, and found this very disturbing."
Bonds defended the campaign in a statement to the Advertising Standards Board.
"The imagery shown in the email newsletter was a selection of social media imagery from a range of bloggers and influencers who regularly engage with the brand.
"The imagery depicted was a montage of women and kids wearing Bonds apparel.
"The images are light-hearted and show kids being kids in their natural environment – some of the images show the children asleep.
"The intent was to showcase the product the children are wearing and not intended to sexualise children in any way."
Case notes acknowledged increased concerns around the sexualisation of children however, the claim was dismissed.
"The Board noted that advertisers should take extreme care when using images of children but considered that overall the image of the girl in the striped dress presents a child in a pretentious pose rather than a sexualised pose."