The airline is supposed to advise you of your rights, and simply put, you have been lied to.
You are entitiled to rerouting in a comparable class to that booked.
No monetary compensation is payable if with any such re-routing if you depart no more than one hour before the orignal scheduled time of departure and reach your final destination less than two hours after the scheduled time of arrival.
If the delay is 4 hours are more, you are entitled to €600; if the delay in less than that, this can be reduced by half to €300.
Note that since a court ruling late last year, delay compensation is effectively the same as cancellation compensation if the delay is of three hours or more. (
ECJ: Delays Could Cost Airlines)