Interesting, didn't realize that but think about it. You get back $275 - $70 you already paid for the "service" = $200 net IN BEST BUY GIFT CARDS (not cash) so you can't buy your replacement elsewhere, for a device you could easily sell for ~$400 in 6 months . Still a rip-off.
I've sold dozens of phones (and other big ticket stuff) on eBay for over 13 years with never a single problem or hassle but of course YMMV, but if it's worth losing $200 for "convenience" than so be it. I can't afford to write that off for convenience sake.
Hey, I'll give anyone $225 in a New York minute for a GS2 in UP TO 6 months ... and you'll get CASH no gift card, no hassle no fee. Save your $70 and make $25 (net) more assuming it's in excellent working condition with all accessories.
Interesting thought for a real internet business.
Why didn't I think of it! Charge someone $80 with the promise of giving them back HALF of what they paid for something UP TO 6 months down the road (which you know is worth at least 2X that) and also know that 90% of the people won't even take advantage of it because they will still be under contract and don't want to spend $600 to replace it so you keep the $80 fee and not have to pay out a cent.
No wonder some folks are so rich and poor schmucks like me sit here just dreaming about it.
Edit: Read BB's "terms" for this program including the expected condition of the "traded" item:
Buy Back Program Terms and Conditions
Plus they don't give you back the sales tax you paid on the original purchase and you have to pay it again on the new purchase so there is another 14% or so of the original cost lost.