I thought it was considered general knowledge now not to pack wrapped gifts because they may be openend and searched. I too carry anything of value on. And I always check luggage because I don't want to lug it through 2-3-4 airports. I've never had any trouble, my bags have been searched many times. However the way your friends bags were treated was unacceptable. I would have gone straight to the airline while I was still in the airport and demanded to be compensated for the luggage.
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