I don't know if there's anything wrong with what he's doing, legally speaking. Even less clear to me is whether it would be wrong for one student to buy them and then share them with the others (fair use).
One thing is for sure. He's a jerk. Let him do it and let the market forces play. Assuming those courses are taught by at least one other professor, word will get out and students will flock to the other(s). Unless there's something else that offsets the jerk factor.
Although I can't say he's doing anything wrong, per se, his attitude shows that he really doesn't get his profession, and that's a sad thing. Many students don't learn by going to class, they learn by absorbing and using the information taught. If you don't provide enough material for students to learn the basics on their own even if they miss class or fall asleep in class, (at least in the form of a decent recommended textbook) then you are failing your mission. If you believe for one minute that students learn more by frantically scribbling down useless notes that will be inconsistent, incomplete, illegible, and cause the student to miss out on the opportunity to digest and understand what the teacher is saying in class, then you are sorely deluded. I have learned far more in math/physics classes where I didn't have to take notes (because the teacher's provided notes or the book were sufficient). As a sophomore I noticed this effect and vowed not to become a slave to notes. I keep a notepad handy for the occasional gem or logistics, but I read the material (novel idea, I know) and go to class prepared, and then PAY ATTENTION. It's amazing how much more you learn when you're paying attention than when you're frantically scribbling whatever words are floating through the air.
PhD Student, 3.7 GPA