Taipei High Administrative Court published Wednesday its ruling overturning a lower court decision and canceling a fine of NT$200,000 (US$7,200) imposed on the satellite TVBS Entertainment Channel for embedded marketing.
The fine was issued by the National Communications Commission (NCC) after the 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 (???) when taking wedding photos at Taichung World Flora Exposition.
The NCC imposed the fine based on the provisions of the Satellite Broadcasting Act in January 2020, deeming the episode an example of placement marketing because the television channel failed to reveal the name or trademark of the sponsor when broadcasting it.
TVBS challenged the NCC ruling, saying it did not gain any benefit or interest in return for the segment or obtain a higher audience rating. Instead, the NCC action infringed on the independence and creativity of the production team, TVBS argued.
The television company took the case to Taipei District Court, which found in favor of the NCC on the grounds the episode was not a necessary part of the drama.
Following the television company’s appeal, Taipei High Administrative Court overturned the district court’s decision late last month, citing a poor understanding of the Satellite Broadcasting Act on the part of both the NCC and the lower court.
As it was proven that there was no quid pro quo between TVBS and Lu, the high administrative court in its ruling called the lower court’s verdict contradictory because it considered Lu’s appearance in the drama to be a “gratuitous act” while deeming TVBS and Lu to have a mutually remunerative relationship.
The ruling is final and cannot be appealed.
Source: Focus Taiwan News Channel