Jewell and his friend and business partner, Peter Martin, 28, started their operation with freecondoms.com, on which participants get points for purchases or signing up for programs, and the points can be redeemed for condoms.
Then they realized if they incorporated more people into the process they could offer a bigger prize, which led to the iPod giveaway.
Susan Grant, director of the National Fraud Information Center, a project of the National Consumers League, said "free" offers on the Internet should be examined closely for underlying costs. Typically, a business will need to cover the amount of the prize and such offers will be followed by an onslaught of solicitations.
"I don't think a lot of people would really stop to think about the implications," she said.
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