Marketing Practices

When it comes to advertising and marketing, we take special care toward children 12 and under, their parents and caregivers. For programming that targets this age group, we maintain clear guidelines for all our media outlets that require advertisers, both internal and external, to focus on the positive attributes of their products and services in a respectful and appropriate manner.

Our guidelines include high standards requiring that advertising to children not be deceptive, inappropriate, unfair or exploitative in any way. The guidelines address topics such as:

• Appropriateness of products and services being advertised and messaging/tactics utilized
• Accuracy of descriptions of features and benefits
• Delineation between advertising and content
• Fairness of tactics given child's age, cognitive maturity or emotional vulnerabilities

To manage the implementation of these standards, the Company maintains a dedicated staff of Standards professionals who review all kids programming before airing, including commercial content for our kids television and radio networks. In addition, Disney is a member and supporter of the Children's Advertising Review Unit (CARU) of the National Advertising Review Council (NARC).

Disney Channel Sponsorships

Disney Channel accepts certain limited sponsorships, with a focus on pro-social messages, with limitations on commercial messaging, and with no call to action or other sales inducements.

Marketing and Advertising Disney Products and Services

Disney's own promotions adhere to the CARU guidelines and strive to be both truthful and respectful of the unique sensibilities of children. We approach our marketing with the belief that parents and caregivers know what is best for each family, and that in many cases, families and children look forward to hearing about new Disney-branded products and experiences. We strive to deliver these marketing messages in a way that families are comfortable with. As indicated in other areas of the report, we take our cues from parents in this area.

Disney has dedicated teams that oversee marketing and promotional practices globally. They take a "consumer first" approach to managing this area and routinely seeks out parental input on our marketing activities.

Disney reviews its motion picture advertising and marketing plans to make sure they remain consistent with the goal of not inappropriately advertising R-rated movies to children. The Company's policy for the marketing of motion pictures applies to its domestic theatrical and home entertainment business units. It addresses aspects of marketing such as the use of age-appropriate media forums, inclusion of ratings and explanations of rating in promotional media, programming time slots for on-air promotional media, exhibition of trailers, and product tie-ins, among others.

Disney designed this policy to avoid inappropriate marketing of motion pictures rated R by the Classification and Ratings Administration of the Motion Picture Association of America (MPAA) to persons under the age of 17. Further, business units comply with the Regulations and instructions of the Advertising Administration of the MPAA, which reviews and regulates motion picture advertising for audience-appropriate content and placement.

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