http://www.spin.com/articles/death-grips-no-love-deep-web-album-download These guys are ridiculous. Edit: and yes, the album cover is "NOLOVEDEEPWEB" written in marker on a penis.
I'm thinking one of three things is going on here: 1) They can do this because they actually own their music (if that's the case, kudos to them). 2) Epic, amazingly, doesn't give a shit enough to make a fuss. 3) This is a silly publicity stunt.
Their label is probably in on it tbh. They sign to a major label, now they have to restore their indie cred. Something like that.