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Expedia - Free Cancelation policy...Not Free!

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Hi all,
Appreciate some advice from any consumer protection experts out there...

I recently booked a hotel with Expedia, as I often do. The hotel I chose had a special feature of Free cancelation advertised before a certain date. It also said 'Pay at Hotel' & credit card details only needed for confirmation purposes.

I'm fairly used to these terms and have done so many times before, however on this occasion, I noticed my credit card had already been charged a few days after booking (by the hotel). I queried this with Expedia who said it was an 'Advanced Purchase Hotel'. I asked about the cancelation policy & they repeated the same as the website - fine I thought.

A few months down the line, I need to cancel & now Expedia are saying - nothing they can do, hotel have taken the money & they can't refund.

I've gone back & checked my booking confirmation & all the small print & there is no mention of this advance purchase policy, the website heavily advertises the free cancelation in the T&Cs. Even today, I've checked the website with dummy bookings to check I haven't missed something & at no point in the booking process does it ever mention about not being able to cancel, or advance payment.

In my mind, this is miss-selling of a service & any would-be buyer is not told up-front of the T&Cs, surely this is Expedia's responsibility as the selling agent? But having got nowhere with Expedia Customer Services, what are my alternate options (if any)?

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