How Is This Amex Buyer Protection?

I'm beyond disappointed with how American Express has handled my dispute.

I've been an American Express Platinum Cardmember for the past four years, and I spend minimum $50k annually on my card because I believed Amex stood behind its cardholders when something went wrong.

Instead, I feel like I've been left to deal with the consequences entirely on my own.

I purchased a pair of Chrome Hearts eyewear through Grailed for approximately $2,750. After receiving the item, I discovered it was not as represented and requested a return.

When Grailed denied my request, I opened a dispute with American Express.

During the dispute, Grailed advised Amex they would offer a "courtesy remedy without admission of liability" and provided me with a prepaid return shipping label. I followed every instruction exactly as I was told.

I provided photos of the item with the letter, photos of the box, the shipping label on the box, the item in the box, the shipping receipt, the tracking number and the delivery confirmation once it was delivered.

The package was delivered on March 17, 2026, and signed for by the recipient.

The refund never came.

When I contacted American Express, I was repeatedly told they were waiting for the merchant to process the refund. Despite that, Amex eventually closed my dispute.

So now the merchant has the returned item, I still have the $2,750 charge on my account.

This is what I cannot understand:

How can American Express close a dispute when the merchant has received the returned merchandise but never issued the refund?

What exactly is the purpose of the purchase protection and dispute process if a cardholder can follow every instruction, return the item as directed, and still end up without the merchandise and without the money?

I expected American Express to advocate for its customers and ensure that an agreed return was actually completed before closing the case.

Instead, I have dealt with horrible customer service from the "supervisor" who then escalated to the complaints department where they did NO review and sent me the same bullshit letter saying the matter is closed and that no further discussion is possible.

Is this really the level of service American Express provides to its cardmembers?

Has anyone else experienced a situation where American Express closed a dispute even though the merchant had possession of the returned item and the promised refund was never issued?