History
Gratis Internet was established in 2001. Since July 2004, it has launched a number of websites offering free merchandise, most notably iPods, to users who register and complete membership requirements.
Although the word "free" is used prominently, would-be members seeking to complete an offer to qualify for the free merchandise are often given a number of options, some of which involve signing up and paying for a service or subscription. Gratis has launched its websites in the United States, United Kingdom, Canada, Germany, and Australia.
Gratis's revenue in 2004 was US $20.5 million, according to Inc.com. Inc.com also reported that Gratis Internet had only 12 employees.
In August 2005, Gratis Internet's multiple websites, including the original FreeCondoms.com and FreeIpods.com, were branded under the FreePay name.
In March 2006, New York Attorney General Eliot Spitzer filed suit against the company, alleging that it sold personal information obtained from millions of consumers despite a strict promise of confidentiality. The suit followed a $1.1 million settlement by Datran Media, which had obtained 7.2 million names, e-mail addresses, home phone numbers, and street addresses from Gratis Internet. Gratis co-founder Peter Martin disputed that his company ever sold or rented out customer information, saying that it hired Datran Media to work on creative design and back-office support for its e-mail marketing campaigns.
In May 2006, Gratis Internet announced new terms of service, allowing users only three months to complete an offer and refer five friends.
In February 2010, a Gratis Internet spinout called Social Cash, an advertising network for Facebook applications, was purchased by LifeStreet Media, of San Carlos, Calif., for an undisclosed sum.
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