It might be morally or ethically wrong to do this, although that even depends on your personal morals, but it definitely isn't illegal. It's called free enterprise. The store has an item that is in high demand and is trying to make a buck, nothing wrong with that! I wouldn't fall for it and would definitely complain, but there is nothing illegal about what they are doing.
If you truly think that they are breaking the law, call the police or speak with your local magistrate and try to press charges, I guarantee they'll laugh in your face!
It is 100% illegal. You cannot advertise something as costing X, then charge Y. This has nothing to do with morality or the like, it is a legal matter.
I started with Radio Shack first and they acknowledged their mistake and corrected it.
i.e. I once went into a Fry's Electronics to buy something and also checked out their cameras. I noticed that a camera I had wanted had been listed as on sale for $299 when it cost $499 everywhere else. I went to buy it and it was $499 but I mentioned the $299 sign. I was okay with not buying it as I knew the $299 sign was wrong but the Fry's manager knew the law and that he had to honor the sign regardless. Long story short, by law he HAD to sell the camera to me at $299 even though it was a mistake. He offered, and I accepted in the end.
I am a business owner in CA and its obvious that very few people know the first thing about the laws of running a business. You cannot state that an iPhone costs $199, then charge $225. It's really simple people!!
So go ahead and get screwed with your ignorance, it makes no difference to me. But if you want to know what's legal or questionable, feel free to ask. I'm always happy to help and give educated suggestions.