Supply Chain

PRODUCT SAFETY

The safety of products bearing Disney brands, characters and other intellectual property is of crucial concern to us. Disney requires that licensees and manufacturers comply with all applicable legal and regulatory safety requirements and conduct safety tests by independent, certified third-party testing laboratories or equivalent procedures. Our corporate Product Integrity group, staffed with experienced engineers and safety professionals in Burbank, Orlando, London, and Hong Kong, monitors licensees' and manufacturers' verification of their compliance. In 2010, the group reviewed more than 60,000 test reports.

Products Sold by Disney Licensees

Licensees are selectively required to submit test reports from an accredited testing laboratory demonstrating that their products meet or exceed applicable product safety regulations. Product Integrity engineers review the reports to verify that the licensee's testing was appropriate, that the proper procedures were performed, and that applicable regulations were fully satisfied.

In addition, Product Integrity conducts a random testing program in which products made by licensees are purchased directly from retail stores and submitted to an independent third-party testing laboratory to verify a licensee's continued compliance with applicable regulations.

Products Sourced by Disney

Products exclusively sold or distributed by a Disney business unit (such as Disney Store and Parks and Resorts) are subjected to direct Product Integrity review. The engineers review, document and manage third-party testing to verify that these products meet all applicable regulatory and Disney safety requirements.

Standards and Testing

Disney collaborates with other companies and interested organizations to develop material standards and assess testing methods. For example, we participate on the state and federal regulation committees of the Toy Industry Association and the toy standards committee of the American Society of Testing and Materials.

Product Recalls

If a product distributed or sold by Disney becomes subject to a recall, Disney's Product Integrity team works closely with the product manufacturer and the appropriate regulatory agencies to remove the product from the market as quickly as possible. If a licensee product becomes subject to a recall, Disney cooperates and assists with removal upon notice or request from the licensee or regulatory agency. In some instances, when legitimate concerns about materials or processes are raised in the absence of a regulatory standard, Product Integrity assists in the isolation or removal of products from shipment or retail pending more definitive study. For instance, in 2008, responding to widespread reports of contaminated food products in Asia, Disney imposed a ban on the chemical additive melamine before the adoption of a United States Food and Drug Administration standard.