Did you remove the film protecting the camer if any? Also, check the camera app to see if no filter is applied. 

I have removed all films but still looks terrible. There's no filters on. Disappointing on a new phone. 

Did you enable night mode or blue light filter by mistake? 

I checked those and they were both off. The screen itself looks great, but when the front camera is on the colors aren't great. Grayscale or sepia colored looks depending on different lighting. Very strange. 

Can you try to test the phone outdoor with good lighting condition and see if the issue follows? 
Also, can you send the taken pictures to your friend and see if the color problem stays (to make sure the issue was from the camera and not the screen).

Take a picture and upload it here so I can see

Remember you have 15 days (30 days if bought online) to return the phone. Otherwise warranty is the only option if you exceed those times 

https://www.koodomobile.com/help/warranty-and-repair-policy