Your math is a little off here...
No, it isn't. While the CPS straps are given as FREE gifts to paying CPS members, their market value is anywhere from $50-$75.
Smugmug is ok with you collecting and selling their free straps?
They have no right to complain. Once they give him the straps, ownership is transferred to him. He can do whatever he wants with said goods. If you don't like it, sue him.