Hosain Rahman the CEO of Jawbone about the UP:
This means that for whatever reason, or no reason at all, you can receive a full refund for UP. This is true even if you decide to keep your UP band. We are so committed to this product that we’re offering you the option of using it for free.
They admit there is a problem with the hardware and stopped production to fix them. Good return policy, but man is that some crappy QA.