Note that it's 110% of the difference.
So if you find a $200 item for $190 they'll refund $11 making the price $189.
There's a perfect way to abuse this, find something they have for full retail (i.e. say a laptop they have for $1050), find an authorized dealer with the item on sale (for $850) and you get 1% off ($20 off).
I guess the only real value is with online purchases where you get CB for the higher price (at the merchant with higher CB), I've done this a lot with shoes, it's still doable but cashback is down and the 110% price guarantees are nearly gone.
I guess if Fry's has stores in states that don't charge sales tax (or lower sales tax) this would make the purchase tax-free (at the lowest price from an auth. dealer), and/or if they'd honor this for telephone (and a long-shot, but maybe an ignorant rep would honor it for online orders too).
he was probably focusing too much on the spelling
I don't appreciate the personal jab.