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Scam Watch: Participants Say Stay Away from Staywell Research

Staywell Research (“Staywell”), a network of medical research sites in Agoura Hills, California, made it on BCA's Scam Watch list and has upset many of their clinical trial participants, who were left uncompensated for their participation. Business Consumer Alliance (“BCA”) has received over 100 complaints from angry participants alleging they have not been compensated by Staywell.

Staywell Research Scam Watch

The company website continues to advertise studies, with promises of compensation ranging from $200 to $1,500 at the conclusion of the trials, although many past participants haven’t received their stipend yet. Staywell claims participants that complete the study will be paid 25 business days after completion of all visits, and those that do not complete the study will be processed after 75 business days. A number of consumers allege they have waited three to six months, and, in some cases, longer to receive compensation from the company, and are still waiting to be paid. One Costa Mesa consumer, who has been waiting to receive $800 in compensation since August 2014, was asked to accept a payment plan that would spread out five payments over a span of three months. When the consumer refused the payment plan, a Staywell supervisor informed the dissatisfied and unpaid consumer that individuals that agree to the payment plan receive preferential treatment and their partial checks are processed first.

Consumers report that they are given the runaround and are unable to receive firm confirmation that compensation has been sent. Unfortunately, some who have received checks fare no better since they are unable to cash Staywell’s compensation checks due to the company’s lack of funds. In some cases, this creates an additional financial burden to consumers when they incur bank fees due to Staywell’s insufficient funds.

Although Staywell’s Research Compensation website states, “The issuing of stipends within the agreed upon timeframe is an important part of our operations and professional reputation”, it doesn’t appear that they are living up to their agreement. While Staywell was initially responding to complaints filed with BCA, they have since stopped addressing complaints and now have an F rating. Consumer reviews and complaints may be reviewed on Staywell’s BCA reliability report.

Clinical trials are an integral part of new product discovery and development. Before participating in any clinical trial, potential volunteers should consider the risks that may be involved. Prior to agreeing to participate in a trial, the facility, researcher, or physician should provide information required for an informed consent. The information should include details about the study, including its purpose, duration, required procedures, and a point of contact should you need further information. The consent should also explain the risks and potential benefits. Always consult your physician before starting any new treatments or medications.

BCA Tips:

  • We advise consumers to do their research by first checking out the clinic or facility offering the trial with BCA.
  • If possible, speak to others who have completed the trial.
  • If the trial includes compensation for participation, keep records and make sure you are in compliance with the terms for compensation.
  • If you do not receive compensation, file a complaint with BCA.

Keep updated with trending scams and help other consumers by joining the BCA Consumer Ally Program. For more information on the program, send a request to the editor by clicking on the email address below.

UPDATE (10/31/2014):
Our report, blog post and consumer community caught the attention of NBC 4 in Los Angeles.  Below is the story that aired on 10/30/14. If you participated in a clinical trial and still have not been compensated, we urge you to file a complaint with us so we can try to negotiate a settlement for you.

NBC 4 - Clinical Trial Participants Fight for Compensation They Were Promised
Link to story: http://www.nbclosangeles.com/investigations/Clinical-Trial-Participants-Fight-for-Compensation-They-Were-Promised-281008212.html

About the Author:

Nicole Pitts is a Senior Business Analyst and Editor for Business Consumer Alliance. She has been with the organization for 12 years and specializes in report writing, business evaluation, and investigations. Nicole corresponds with businesses regarding complaint trends and provides suggestions to help them alleviate problem areas that may cause concern. She also conducts advertisement reviews, reports on government enforcement actions, and assists government agencies and the media in obtaining information. She enjoys reading, movies, and spending time with her family. Nicole may be reached by email at npitts@businessconsumeralliance.org.