Before you sell or give away your iPod touch, be sure to erase all content and your personal information. If you’ve enabled Find My iPod touch (see Find My iPod touch), Activation Lock is on. You need to turn off Activation Lock before the new owner can activate iPod touch under his or her own account.
Erase iPod touch and remove Activation Lock. Go to Settings > General > Reset > Erase All Content and Settings.