One option is simply to report it to the Federal Trade Commission for investigation, along with a negative publicity statement. That externalizes the cost.
If you would like assistance drafting the agreements, I am a lawyer and would be happy to help. I have deep knowledge about technology businesses, intellectual property licensing, and contracting, mid-level knowledge about data privacy, light knowledge about HIPAA, and no knowledge about medical testing or these types of protocols. I'm also more than fully employed, so you'd have the constraint of taking the time I could afford to donate.
Max L.
FTC is so much better than lawsuit. I don't know a single advertiser that isn't afraid of the FTC. It looks like enforcement is tied to complaint numbers, so the press release should include information about how to personally complain (and go out to a mailing list as well).
I would love assistance with the agreements. It sounds like you would be more suited to the Business <> Non-Profit agreements than the Participant <> Business agreements. How do I maximize the value of your contribution? Are you more suited to the high-level term sheet, or the final wording?
I'm a LW reader, two time CFAR alumnus, and rationalist entrepreneur.
Today I want to talk about something insidious: marketing studies.
Until recently I considered studies of this nature merely unfortunate, funny even. However, my recent experiences have caused me to realize the situation is much more serious than this. Product studies are the public's most frequent interaction with science. By tolerating (or worse, expecting) shitty science in commerce, we are undermining the public's perception of science as a whole.
The good news is this appears fixable. I think we can change how startups perform their studies immediately, and use that success to progressively expand.
Product studies have three features that break the assumptions of traditional science: (1) few if any follow up studies will be performed, (2) the scientists are in a position of moral hazard, and (3) the corporation seeking the study is in a position of moral hazard (for example, the filing cabinet bias becomes more of a "filing cabinet exploit" if you have low morals and the budget to perform 20 studies).
I believe we can address points 1 and 2 directly, and overcome point 3 by appealing to greed.
Here's what I'm proposing: we create a webapp that acts as a high quality (though less flexible) alternative to a Contract Research Organization. Since it's a webapp, the cost of doing these less flexible studies will approach the cost of the raw product to be tested. For most web companies, that's $0.
If we spend the time to design the standard protocols well, it's quite plausible any studies done using this webapp will be in the top 1% in terms of scientific rigor.
With the cost low, and the quality high, such a system might become the startup equivalent of citation needed. Once we have a significant number of startups using the system, and as we add support for more experiment types, we will hopefully attract progressively larger corporations.
Is anyone interested in helping? I will personally write the webapp and pay for the security audit if we can reach quorum on the initial protocols.
Companies who have expressed interested in using such a system if we build it:
(I sent out my inquiries at 10pm yesterday, and every one of these companies got back to me by 3am. I don't believe "startups love this idea" is an overstatement.)
So the question is: how do we do this right?
Here are some initial features we should consider:
Any placebos used in the studies must be available for purchase as long as the results are used in advertising, allowing for trivial study replication.
Significant contributors will receive:
I'm hoping that if a system like this catches on, we can get an "effective startups" movement going :)
So how do we do this right?