No, he didn't shop around and the LBS gouged him for more than their regular price, or they lied when he asked for the quote after the fact. Either way, not a good way of doing business.

A couple questions though: Did the shop mount the tires for you? If so, maybe they included some money for the mounting. The internet can't mount tires for you. Secondly, where are you getting the MSRP number from? The manufacturer's website? Or are you just saying that the average price online is $22? If you are merely quoting numbers you saw on online stores, did you also add in any shipping charges? I've seen a lot of online sites that have super low product prices and then overcharge for shipping.

In my case, I pay the extra and get it from the shop. But for that money, my LBS treats me right. They advise me on purchases, guide me on projects, etc. When I talk to them about what I'm looking for, they just don't push a standard answer on me; they listen and give me good suggestions. (For instance, I said I liked the protection of Schwalbe Marathon Plus tires, but the rolling resistance was too much and I didn't want to pay an arm and a leg; they suggested Panaracer RibMos, a tire I hadn't previously heard of, and I couldn't be happier with them. Also, they helped spec out parts for my first wheel build, and inspected the wheel when I was finished, making sure it was properly destressed.) I pay more at the LBS because I get a lot of value for that extra money. If your LBS isn't providing you with that kind of value, ditch 'em.