As @inagroove says the manufacturer is 100% in the wrong here.
You absolutely should return the item and get a full refund from them.
If they try to resist, don’t take no for an answer.
I think you’re right not to blacken their name at this stage. Give them a chance to rectify the problems first. It may be a one off case with an otherwise fair manufacturer.
Sometimes when we fall foul of sharp practice we feel guilty as if we are at fault. This is clearly not the case here and you have genuine cause for complaint.
Conmen thrive because honest people feel gullible and are afraid to speak up. If this manufacturer gets away with it this time, he may try it again on someone else.

