They're doing the right thing, trying to prevent copyright infringement. Of course, they wouldn't bother unless there was some risk to them. It's CYA.
Their ability to handle these situations professionally varies. Dealing with poorly trained minimum wage employees is the downside of fast, cheap prints.
Whoever you choose as your print vendor, work to develop a personal relationship with them. You'll both be better off, and someday they might prevent some tightwad from making 100 copies of one of your pictures.
True, but I'm more worried about Internet theft of photos and subsequent use in other countries or even states. Obviously Wal-Mart was not concerned with this until they lost money though.

