Now before I begin I would like to say that I am also annoyed by this problem, however rather than waste time moaning about it (which to be frank, is childish!) i've fed it back to Apple as a bug and even got a nice thank you of one of the software engineers for it.
Now on to this consumer protection lark.
Question: Did Apple on sale say "this phone can take photographs"
Answer: Yes
Does it: Yes
Question: Did Apple say at ANY point before your during you purpose "when you import to a computer they would appear the right way up"
Answer: No
My point is, while it is an annoying bug and by all respects something that should be simple common sense I really don't think consumer protection laws apply here, no matter how strict they are.
The law is there to protect the consumer if a product is advertised as doing something and it cannot. In this case the phone can take photos and videos fine so not fit for purpose is totally incorrect.
Thanks
Recon