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Comments
Lots of good info here, but in my experience retailers and customer support type people are not well informed about this and you should always be prepared with all the relevant regs and be ready for an argument. Often, if they don't play ball then a well written letter with the relevant regs quoted and an appropriate threat of small claims court action gets their attention.
Also if even just part of the pedal was purchased on a CREDIT card then you can get come back from them as the contract is also with them.
http://www.moneysavingexpert.com/shopping/consumer-rights-refunds-exchange
If it were me and they were refusing to pay postage then to get the ball rolling I would probably complain, pay it and then chase after a refund afterwards.
Edit-thinking about it, as the fault might not br immediately obvious in that it's not visually broken, I would record a video of it showing the fault, just in case..
That being said I've paid return postage in the past on faulty pedals. When it's only a couple of quid you often decide it's not worth the hassle. Which of course lets the shop off with it.