This is a relationship issue, not a tech issue. If the relationship is based
on control rather than communication, that is going to play itself out
eventually.
Control and power issues can get ugly in multigenerational families,
especially during times of high unemployment.
I agree with Mason about defending this boundary. You're going to have to do
it eventually, whether it is telephones, choice of partner, choice of career,
choice of whether to have children and how to raise them, or any other choice
that adults have the right and responsibility to make, regardless of income
or employment status.
If your parents spent their own money on the telephone handset, I believe the
charges on their credit card will be reversed if you simply return it and
check the same box on the form that you would for "wrong colour" or "wrong
size" on any gift.
If you wind up with store credit or a gift card instead, be sure to thank
them for whatever you do decide to purchase with their gift.
If they signed you up for a government program against your will, I believe
that is probably against the laws of most countries and beyond anything a
"forum friend" can really do to help other than saying that I am so sorry.
:'(