Kay jewelers mall of America Credit scam Bloomington Minnesota

My girlfriend and I were doing some shopping at the mall of America and wanted to get some ideas for a ring for our upcoming engagement. Kay jewelers on the 3rd floor offered us to join their rewards program for free. I had asked "is this going to be a credit pull?" They answered "no" and that it was "strictly an I house rewards program with no credit information needed". The sales clerk continued to ask me questions which led me to ask, "is this a credit pull? will this in any way affect my credit? are you 100% sure this has nothing to do with credit?" The clerk assured me it didn't by saying, "I guarantee you this has nothing to do with credit, it is just for our in house rewards program. You may get some coupons in the mail with special member offers." 

A week later I received my credit card in the mail. I immediately called customer service and had the card deactivated. Upon doing so I was informed that not only did my credit score take a hit from the credit pull but that it would also take a substantial hit from canceling the card. This needs to be addressed by someone....anyone. After repeatedly being lied to I feel like that company should have to pay for this. I warn anyone planning to shop at kay jewelers to avoid this completely, do not give out any personal information for any reason.