The court ruled in favor of David Lowe, 47, of Brooksville, who allegedly sucked on the toy in a convenience store parking lot as a 7-year-old girl walked by with her mother and grandmother, The Orlando Sentinel reported.
Lowe pleaded no contest in July 2009. But he appealed after a two-year period of sex-offender probation was imposed, arguing that under Florida law he did not actually commit a sex act.
"His actions, though clearly rude and offensive, do not violate the express terms of the statute," the appeals panel said.
The panel said that state law defines sexual activity as involving real genital areas.