Hi Quiltmaniac2010! We haven't had any other reports about this site, so could you give us a little more information to help us solve the problem?
We don't have any links for "Free labels" on the site itself. Was this link in the ad at the top of the page? If so, are you still seeing that ad?
It sounds like this was a bad site that snuck through our ad network, in which case we can clear it out if it hasn't been deleted already.