It does, but you have to choose to participate (I don't). Some of the other sites offer all sizes free, but 123rf restricts the size to something that's good for blogs or tiny sizes in print, but not much else. DT has freebies as well, but again, you don't have to participate if you don't want to (I don't). I believe FT still does too.
123rf also time limits the free small size.
If I find someone using things without a license I'd rather direct them to free (but legit) stuff than have them pirate.