Solicitor general Harriet Harman's attempt to have a father jailed for child cruelty was thrown out by the Court of Appeal.
The man, who cannot be named for legal reasons, pleaded guilty to child cruelty at Harrow Crown Court, west London, in April and was later given a two-year community rehabilitation order.
He admitted caning three of his eight children, aged 13, 10 and eight, with a length of bamboo to persuade them to own up to misbehaviour.
Jonathan Laidlaw, counsel for Harman, argued that the man had been treated with "undue lenience".
One of the three judges, Lord Justice Keene, said: "If chastisement goes beyond what is reasonable, it will be a criminal offence, but it doesn't automatically follow that a custodial sentence is always called for."
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