Disney FAMA Audit

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📖 Detailed Explanation

Disney FAMA Audit is a compliance audit conducted by The Walt Disney Company on its licensees, suppliers, and factories. Its core purpose is to ensure that production processes comply with Disney's social responsibility standards (such as ILS) and supply chain security requirements. FAMA stands for Facility and Merchandise Authorization. Only after passing the audit can a factory obtain the qualification to produce Disney products. Usage scenario: When a foreign trade enterprise receives an order for Disney-branded products, it must pass this audit; otherwise, shipment cannot proceed. Precautions: The audit covers labor rights, working hours and wages, health and safety, environmental protection, and counter-terrorism. Common issues include excessive overtime, underpayment of wages, and fire safety hazards. If the audit is not passed, corrective actions must be completed within a specified time limit and a re-audit is required. Serious violations may result in permanent disqualification. Difference from other terms: Unlike ordinary customer audits (such as BSCI or Sedex), Disney FAMA audits are conducted by third-party agencies designated by Disney, with stricter standards and directly linked to authorization. It is also different from Disney's 'ILS audit': FAMA is the final authorization certificate, while ILS is an audit module.

📝 Examples

1. Our factory just passed the Disney FAMA audit last month, so now we can accept Disney FAMA orders. (Indicating that production qualification is obtained after passing the audit) 2. The customer requires us to complete the Disney FAMA audit before shipment; otherwise, the order will be canceled and compensation will be claimed. (Indicating that the audit is a prerequisite for shipment and the risk of breach is high)

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