I think you are still allowed to give free games away, but you don't receive any Contributor Value credit for games given away for free in online promotions, and you can expect this to be backdated to take effect when the promotion began, i.e. you can still be credited for giving it away after the beginning of a promotion but then lose the credit when the promotion is registered and the game is revalued in the system.

He can do giveaways for free games but he wont get any CV from them, the free games have ** when ur making the giveaway :) no value.

It´s legit now. Rules changes a few months ago. See here