Free App Daily Scam using incentives

[newshidstudios]

Hello,

Earlier this year Apple placed a ban on all incentive based downloads. Isnt what this app is doing basically?

Giving users points for downloading which they can trade for money and giftcards.

http://itunes.apple.com/us/app/freeappdaily/id470044625?mt=8

Please clarify this for me because I am thinking about reporting them