Apple has always had restocking fee.

I think all carriers are required by law to allow you to terminate you contract within 15 to 30 days after activation without having to pay an early termination fee. The restocking fee, of course, is up to the company to decide.

In London only merchants who love to rip-off people down in Tottenham Court Road charges 'restocking fees'. No other reputable companies would do that, not even Harrods or crappy stores like Dixons/Currys. Maybe Apple down at Regents Street, but I never bothered to shop there.

Actually, most Apple stores waive the restock fee for items in the firs 14 days. In the case of the iPhone they seem to be enforcing it and I can think of one REALLY good reason for this:

Ebay

Every major gadget launch in the last couple of years has been plagued by speculators buying as many units as possible to make a quick buck. From Apple's point of view why should they give someone a risk-free approach to make money re-selling their products?

And I've gotta say, I don't understand why someone would be returning an iPhone for reasons of cash (or lack thereof). The price has been available for months, the monthly tariffs were known in advance, if you don't think you can afford the latest shiny gadget then DON"T BUY IT!

I heard there was a $170 cancellation fee for the phone plan.

I'm sure someone will correct me if I am wrong, but I believe the 10% restocking fee only applies to Computers/Monitors and iPods (and by now iPhones)... perhaps "Major Electronics". I bought a power adapter recently and was able to return it with no probs and no restocking fee.

Computers, Monitors, iPods and the iPhone... I doubt that much else gets sold.