I would definitely return it, the plants are able to be returned in a matter of a year, I used to work there. It does not look good at all, I would try Rona greenhouses instead.

-Phil

Is it soft and mushy? I don't think it's rot I just think it's a protective layer of skin.

Did some Google searches, think it's just corking.

That's all it is - it's no danger to that plant, but I would guess that NotocactusLobivia/? wasn't optimally grown at some point, as they generally do not cork. As I said, it's only aesthetically harmful - the plant should be flowering next spring.