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Synergy CHC files for Chapter 11 after losing Costco deal
The bankruptcy follows the companys Focus Factor supplement maker losing a Costco deal, adding pressure as the FDA does not approve dietary supplement claims.
Synergy CHC Corp., the maker of Focus Factor brain supplement, has filed for Chapter 11 bankruptcy after the loss of a Costco deal, according to an article on Yahoo Finance.
The story notes that dietary supplements differ from drugs in the US, with the Food and Drug Administration not approving supplement products before they are marketed. It says supplement makers must have substantiation that any claims are truthful and not misleading, and must submit a notification with claim text to the FDA within 30 days of marketing.
It also highlights the required labeling disclaimer, including that the product is not intended to diagnose, treat, cure, or prevent any disease, because only drugs can make such claims. The filing comes as supplement marketers use broader structure and function claims related to areas like memory, concentration, and focus, which the article describes as a legal grey area.