Actually I've seen this before, and they use legal mumbo jumbo to get around the laws. They make you agree to say you own all the games you're buying, and that you need these for "backups", since you want the originals to stay in good shape.
You are by law allowed to make backup copies of your software, even if they use copyright protection. This may not be true for everything (like those huge legal agreements in most software for puters), but it is the "standard" so to speak.
I doubt someone like this is smart enough to bother checking all the laws, but there are .com sites that offer the same service (they're cheaper though :Q), and even run specials like a normal ecommerce site does. I'm sure these guys checked though.
Don't waste your time IMO. He'll get his anyway.