The Taipei High Administrative Court yesterday published its ruling overturning a lower court decision and canceling a fine of NT$200,000 imposed on TVBS Entertainment Channel for embedded marketing.
The fine was issued by the National Communications Commission (NCC) after the satellite channel on March 8, 2019, aired a segment of its television series Girl’s Power, in which the male and female protagonists encountered Taichung Mayor Lu Shiow-yen (盧秀燕) when taking wedding photographs at the Taichung World Flora Exposition.
The commission in January 2020 imposed the fine based on provisions in the Satellite Broadcasting Act (衛星廣播電視法), deeming the episode an example of placement marketing as the channel had failed to reveal a sponsor name or trademark during the broadcast.
TVBS challenged the commission’s ruling, saying that the company did not benefit from the segment or obtain a higher audience rating because of it.
The NCC fine infringed on the independence and creativity of the production team, TVBS said.
The company took the case before the Taipei District Court, which ruled in favor of the commission on the grounds that the segment with Lu was not necessary to the drama.
The company appealed and late last month, the Taipei High Administrative Court overturned the district court’s decision, citing a poor understanding of the act on the part of the commission and the lower court.
As there was no quid pro quo between TVBS and Lu, the Taipei High Administrative Court in its ruling called the lower court’s verdict contradictory, as it considered Lu’s appearance in the drama to be a “gratuitous act,” and deemed TVBS and Lu to have a mutually remunerative relationship.
The ruling is final and cannot be appealed.
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