So, it looks like this is on the instructor. He picked a textbook that came with its own online modules, and that's what the payment is for. It's probably going to the publisher, not the university.
His answer that it wouldn't be required if classes were face to face, while accurate, doesn't tell the full story. It wouldn't be required if he'd picked a different book, or maybe even if your daughter took it from a different instructor.
There are 22 sections of Math 103. I’d be very tempted to see if I could switch to a different one. Failing that, I’d complain to the math department and/or the provost’s office about the instructor selecting a book with additional fees, and then not informing anyone of the fees until the 4th week of classes.
But do it quickly. Tuesday the 22nd is the last day to drop without record.