1. I'm afraid their T&Cs allow that.
2. As this is the US, you're not likely to be protected in any way. Even the EU law is somewhat vague on hotels (compared to air travel or trains) but back at home you would at least be protected by basic consumer protection and false advertising laws that may be applicable here under some circumstances. But since this is the US company selling you service in the US, it's completely outside EU and member states' jurisdiction.
3. Have you tried reaching to Radisson Rewards customer services, rather than hotel directly? If not, try to escalate it and explain the situation.