Guidelines

It's old and hasn't been updated.
Free games are allowed to be given away now, but only after the period during which they were free (e.g. there is a non-SG giveaway for 10,000 free keys somewhere, you can obtain a key and give it away as soon as that other giveaway ends).
https://www.steamgifts.com/discussion/RCZPq/reduced-cv-and-no-cv-giveaways
EDIT: To clarify, the correct term would probably be 'No CV' as it technically isn't free anymore by the time you are allowed to give it away. (Obviously, permanently free games can never be given away, as it would be pointless.)

Free game - for example, Dota 2. You can't make ga for free game.
Games that were once available for free due to promotions or pricing errors - its not the same as "Free game"

Read this main post.

I had to make that ninja edit when I reread over it. It needs to read:

Beta keys, guest passes, coupons, and currently free games should not be given away.

i believe it's on the to do list though.

Or probably taken the free part out altogether so we stop getting user reports about it.