As noted above, using your likeness for commercial use is not an acquired right. Either your family member signed away a release form and didn't know what was being signed, or the photographer in question is a bit dishonest.
timmmay: This is normal. It's so we can make display albums and use them in competitions, though a few may use them for other things that's very rare.
Note that retaining copyright is generally irrelevant to the customer. While I retain copyright I give customers high res images with a license to do anything other than make a profit from them, or allow anyone else to make a profit from them.
And that's how I'd like to see it, but when we had to hire a wedding photographer a few years a back we couldn't find anyone doing it like this.