Disney In Crosshairs Of Trump Administration As FCC Opens Investigation Into DEI Practices: Retail’s Bearish

FCC Chair Brendan Carr said he wanted to ensure that “Disney ends any and all discriminatory initiatives in substance, not just name.”

Entertainment giant Walt Disney Co. (DIS), which was under the scanner of the Florida state’s scanner over the “Don’t Say Gay” bill, is once again in the spotlight as Federal Communications Chair (FCC) Brendan Carr has recommended opening an investigation into the company’s inclusion practices.

In  a letter to Disney CEO Bob Iger, Carr said he asked FCC’s Enforcement Bureau to open an investigation into Disney and its ABC Network for violating “FCC equal employment opportunity regulations by promoting invidious forms of [Diversity, Equity, and Inclusion) DEI discrimination.”

The FCC chair said the move comes despite recent reports that Mouse Kingdom has walked back on some of its DEI programs as he wanted to ensure that “Disney ends any and all discriminatory initiatives in substance, not just name.” 

“For another, I want to determine whether Disney’s actions—whether ongoing or recently ended—complied at all times with applicable FCC regulations,” he added.

He noted that despite starting out a century ago as an “iconic” company, churning out programming and box office successes," Disney got embroiled in controversy surrounding its DEI policies. 

Carr said, “I am concerned that ABC and its parent company have been or may still be promoting invidious forms of DEI in a manner that does not comply with FCC regulations.”

Citing an anecdote of DEI practices, Carr said a Disney employee described the company’s decision to launch what would amount to racially-segregated affinity groups and spaces.

The company also publicly launched a “Reimagine Tomorrow” initiative and implemented mandatory “Inclusion Standards” across ABC, requiring that “50 percent of regular and recurring characters” be drawn from “underrepresented groups,” he added.

Carr said the standards have ensured hiring of 50% or more writers, directors, crew, and vendors were selected based on group identity and that executive bonuses may also have been tied to DEI “performance.”

Sentiment toward Disney stock among retailers on Stocktwits remained ‘bearish’ (32/100), and the message volume stayed ‘extremely high.’

Bearish watchers based their sentiment on what they alleged to be the company’s “anti-American” and “racist and hateful” activities.

Disney ended Friday’s session down 2.37% to $98.07 amid the broader market weakness due to macro concerns. It has lost about 12% year-to-date.

For updates and corrections, email newsroom[at]stocktwits[dot]com<