Tang Hui had lobbied for harsher punishments for those convicted of raping her daughter and forcing her into prostitution, China's official Xinhua News Agency reported.
After protesting in front of a government building in August, she was put into a labor camp for disturbing the social order and exerting a negative impact on society.
She was sentenced to 18 months in the camp, but was released after eight days due to the public outcry over her sentencing.
Tang sued in January asking for $400, but the Intermediate People's Court ruled April 12 that she was not entitled to compensation.
Her appeal, which was filed with the Hunan Provincial High People's Court, asks for an apology from the labor commission as well as $400.