7 day return policy

I was called near the end of my current contract by this company on Wednesday and told by their salesman that because he was contacting me direct that he could wave the £59 handset fee for a iphone 5c( BULL no1 as anyone can get this handset for free ).
He then gave me a worse deal than i could get from the carphone warehouse website ( this mob are also carphone warehouse ).
BULL no2 was that I could return the phone within 7 days if not satisfied.
The phone arrived and I decided I didnt like it, I found it to small and is only available in, in my view girly colours.
So I rang to arrange a return however according to the absolutely POO customer service dept they wouldnt accept a return as I had put the sim in and used the phone. HOW ELSE DO YOU KNOW IF YOU LIKE IT !!!!
After 1 hour and managing to speak to an also unhelpful escalations advisor I was told if I wasnt happy I could seek independant advice.
Under distance selling regulations an individual has 7 days UNCONDITIONAL rights to cancel/return a product.
They feel they are above English law, i'm still fighting however I have sent a complaint to customer relations, received an automated reply saying that they will reply within 24 hours, we are currently at 29 hours.
DONOT TOUCH E2 SAVE OR CARPHONE WAREHOUSE.