A machine for applying tubular film to products includes a film feed path along which a supply of continuous tubular film is fed, and a sleeve eject station at which the film tubing is cut into sleeves that are ejected onto products passing the sleeve eject station. At least one sensor is positioned along the film feed path upstream of the sleeve eject station for detecting a splice in tubular film traveling along the film feed path. A controller is configured for controlling the machine such that, upon detection of a splice in the tubular film, a defective sleeve that includes the splice thereon is ejected into a gap between successive products so as to prevent application of the defective sleeve to any product.