Captured sailor Faye Turney and her fellow hostages were accused of 'behaving like reality TV stars' after being given permission to cash in on their ordeal.
The 15 sailors and Marines have been told they can sell their stories to the media by the Ministry of Defence, which bracketed the "exceptional circumstances" surrounding their 13-day ordeal with winners of the Victoria Cross.
News that Mrs Turney alone is likely to make at least £100,000 was condemned by former Defence Ministers, ex-soldiers - and families who have lost loved ones in Iraq and Afghanistan.
Faye Turney chats to Trevor McDonald for his programme Tonight
At Westminster, even some Labour MPs suspected a Government spin operation designed to distract attention away from embarrassing questions over the capture itself. PR expert Max Clifford said he had been approached by the fathers of two of the hostages for advice on how to do a deal with the media.
He described the decision as a "propaganda exercise" because it "suited" the MoD for the stories to be told.
"They were very encouraging, they were very happy about them doing this, that's the way they (the fathers) were putting it to me," said Mr Clifford.
Mike Aston, whose 30-year-old son Russell was one of six Redcaps killed by an Iraqi mob, said he was "absolutely amazed" by the "tacky and sordid" decision.
He said: "Regarding my son's death, I can put my hand on my heart and say that I've never sought or made a penny out of it. I think to actually sell my story would besmirch my son's memory."
Mrs Turney, 26 - who did not appear alongside some of her colleagues at Friday's press conference - is expected to tell her story to a tabloid newspaper and has given an interview to be broadcast this evening on ITV's Tonight with Trevor McDonald.
Royal Marine Dean Harris told one Sunday newspaper he wanted £70,000 for his story and the father of Marine Joe Tindell claimed some of the hostages were planning to sell on eBay the vases given to them in farewell "goody bags" by the Iranians. John Tindell said the MoD told them: "Go out there, tell the truth and make the money."
Defence Secretary Des Browne approved the decision and Downing Street confirmed it had
been made aware of the controversial move, but a Number 10 spokesman insisted: "We did not have any involvement in it."
On the unofficial website the Army Rumour Service, some contributors suggested the hostages who decide to sell should leave the Armed Forces - and all proceeds should be donated to families of those killed in Iraq.
One wrote: 'Bloody ridiculous! Two sodding weeks, not a scratch, fed and watered, cigs, new suits. Heroes my a***!'
Lieutenant Felix Carman, one of the two officers captured by Iran's Revolutionary Guards, said if he made any cash from his story it would go to charity.
"I am not interested in making money out of this,' the 26-year- old from Swansea told the BBC. "My main aim is to tell the story. There's some people who might be making money, but that's an individual's decision.
"I think every one of us has had offers. I think the MoD has played this quite well. Somebody, somewhere is going to make money out of this story, and they've said we're happy for you guys, the people who've been involved, to actually be the ones that do that."
The parents of Marine Captain Chris Air said he would not be selling his story. "He's not comfortable with the idea," said his father Robin.
"If others want to sell their story then fair play to them. Some aren't on great salaries so this could change their lives.
"He may have done something with the rest of the men and pooled the money. But now he's decided he doesn't want to keep bringing it up again and again."
Serving military personnel are permitted to speak to the media, but only with the permission of their senior officers.
The MoD said: "Serving personnel are not allowed to enter into financial arrangements with media organisations. However in exceptional circumstances such as the award of the Victoria Cross or events such as those in recent days, permission can be granted by commanding officers and the MoD."
It said the decision had been made because of the "exceptional media interest" and it would have "someone sitting in" on interviews with the hostages.
Former Labour Defence Minister John Spellar defended the MoD decision. "I find it very odd that people who have never heard the sound of gunfire are going around criticising them," he said.
"In the light of the huge interest in their stories, at least this enables it all to be slightly better handled. It seems to me a pragmatic decision on behalf of the people involved."