At first glance this case seems like a bargain - much cheaper than most others, and reasonably good quality. However, when it comes to practicalities, it is quite simply, rubbish. It works fine with an iPod in the case- until you close it, when the magnets cause the iPod to immediately shut down, and require rebooting. I tried this at least 5 times with the same result - must be the magnets interfering with the electronics in some way. The seller then sent me a replacement case - with which I had the same problem - and then a third -same problem again.
If you want a case for your iPod Touch, I'd STRONGLY recommend splashing out on a more expensive model that actually does its job, and will not damage your iPod.
(My iPod is the 3rd Gen 8GB model, so if you have a different model you may not find you have the same issue.)