Privacy Not Top Concern for Companies, Consumers on Fashion-Conscious Wearables

Companies like Diane von Furstenberg, Fossil and Tory Burch that partner with tech companies like Google, Intel and Fitbit to create products that allow consumers to enjoy the benefits of the IoT should pay attention to the FTC’s anticipated IoT privacy guidance, lawyers said in interviews. Amid the infancy of wearables, the agency has yet to issue specific privacy, security and transparency guidance.

Arent Fox fashion lawyer Anthony Lupo said the technology isn’t new but hadn’t existed in the fashion realm. As long as there is proper security and disclosure, particularly when geolocation data is collected, there isn’t a privacy issue with tech fashion, he said. The FTC didn’t comment.

For many consumers buying fashion tech items, privacy isn't a major concern because existing laws already protect the information, said Macala Wright, a marketing strategist and analyst. Most apps don’t share information with others, with a few exceptions like Nike Fuel, which allows users to compete against their friends and see who took the most steps in a day, she said.

Privacy isn’t a top concern for companies, either, experts said. Few companies interested in developing high-tech fashion are thinking about privacy first, even though the FTC has strongly suggested manufacturers incorporate privacy into the design of each product, said Arent Fox data security lawyer Sarah Bruno. She hopes companies address privacy concerns at the forefront of product design, she said, so the products have a better lifespan and a warmer response from consumers.

Designers need to focus more on how data is shared with third parties, since a challenge of an ecosystem of connected devices is how to keep private data private, said Fjord Service Design Lead Peter Burnham, who co-wrote Fjord’s Designers Guide to Wearables. In the next five years, trillions of devices will be connected, Burnham said, noting he currently uses 30 connected devices himself. Personal information could leak, which may not be a concern if it’s just the number of steps walked, but could be embarrassing or compromising if it’s personal medical data, he said.

Technology on the Runway

Tory Burch, a luxury lifestyle brand, and Fitbit partnered in 2014 to create a collection that included “an elegant brass pendant and bracelet, as well as patterned silicone wristbands perfect for everyday style,” a Tory Burch news release said. “Wearable technology is an exciting new category and we’re thrilled to be partnering with Fitbit to offer a unique collection of accessories that transform the fitness tracker into a stylish piece of jewelry that is versatile enough to go from day to evening,” Tory Burch, CEO and designer of the eponymous company, said in July 2014 when the Tory Burch Fitbit accessories collection launched. Tory Burch had no additional comment.

“Our partnership with Tory Burch has taken wearable device fashion to another level, transforming our Flex tracker into an elegant accessory,” Fitbit CEO James Park said then. Expanding the ways users can wear Fitbit products will “ultimately help to inspire users to track their activity 24/7 and make healthier choices,” he said. Fitbit had no additional comment.

Diane von Furstenberg (DVF) collaborated with Google to bring “chic eyewear designs” to the Glass Explorer Program, Google said in June 2014. Google and DVF had no additional comment.

Intel partnered with Opening Ceremony to create a smart bracelet, My Intelligent Communication Accessory (MICA), using 18K gold, water snake skin, pearls from China and lapis stones from Madagascar, or white water snake skin, tiger's eye from South Africa and obsidian from Russia. Users can read fashion tips, horoscopes, text messages, view their calendar with vibration-based event notifications, see upcoming Facebook and Google appointments, respond to requests, and explore restaurants, stores and other establishments nearby. MICA is connected by AT&T’s mobile broadband network. Intel had no comment.

Ralph Lauren's biometric PoloTech T-shirt “tracks and streams real-time biometric data directly to your smartphone,” the designer’s website said. “Biosensing silver fibers are woven directly into the core of the shirt,” it said, which allows the garment to track a wearer’s distance traveled, calories burned, intensity of movement, heart rate, stress rate and more. The company declined to comment on the privacy protections incorporated into the shirt.

French design firm Spinali Design created a connected bikini that has a UV sensor that sends an alert to a wearer’s smartphone when it’s time to reapply sunscreen. The designer also sells technology that allows an adult to monitor a child’s exposure in the sun and is alerted when the child is about 164 feet away, as well as a connected towel.

Importance of privacy policies, transparency

Any product that measures performance, including the Apple Watch and Fitbit, have to gather information and share it with the owner of the technology, said Lupo. That is why privacy policies are really important, he said. Wearables are evolving into devices that could be used for medical purposes, Lupo said. A heartbeat device could signal that a user needs to see a doctor, or an elderly person may wear a device that sends information to children or doctors, Lupo said. Privacy protections will differ for devices that track how far someone walked than for those that detect irregular heartbeats, he said. Terms and conditions and privacy policies will become more important as wearables become more prevalent, particularly in the medical industry, Burnham said.

Wright agreed that consumers using wearable technology like the Misfit Shine, which Wright wears 24/7 and can use to track how long and deep she sleeps among other information, can share that data with their doctors when they feel “something is off.” Doctors, physicians and technologists want to build more preventive measures, Wright said. If a wearable has style and is something people are willing to wear, consumer use will be much higher, she said. Consumer interest in high-tech fashion is going to increase, Bruno said, even if there is some skepticism at first.

Designers will likely be held responsible for security and privacy protection unless consumers are familiar with the manufacturer or if the product is co-branded, Bruno said. Consumers will look to the brand that is in front of them, she said. For a product like the Ralph Lauren TechPolo, where there isn’t a clear partnership with a tech company as there is with DVF and Google Glass, or Tory Burch and Fitbit, consumers will look toward Ralph Lauren for answers, Bruno said. And since shirts and bikinis can’t plug in for a software update, Bruno said she is hopeful that wireless capabilities will be designed to update high-tech fashion software.

Manufacturers will also have to deal with the short-term use issue of products a user may wear only a few times before donating to charity, and think about how to delete the data that was collected or allow a user to do so, Bruno said. Deleting data doesn’t mean the record is gone, Lupo said. If an individual deletes data from a smart bikini, the company should be able to use it anonymously, he said, to view trends such as a user in New York wearing her bikini for two weeks, compared with a Florida user who wore her bikini for six months. The data shouldn’t be sold unless affirmative consent is given by the consumer, he said.

Every company dealing with personally identifiable information has to be transparent, Bruno said. Designers don’t have to be more transparent because consumer use of high-tech clothing and accessories is shorter than for other devices, but designers may have to increase notifications or disclosures on what happens when the product reaches its end of life, she said. Disclosure must be given up front, but consumers may forget and need a reminder, Bruno said.

Sharing data on social networks by default may no longer be the best approach because posting the location and time an individual ran is a privacy concern, Burnham said. As sensors shrink, additional concerns will be raised, he said. The best thing for companies to do is be transparent and give consumers explicit control over their data, he said.

In addition to high-tech in fashion, designers and retailers are beginning to use omnichanneling, or allow consumers to download an app that tracks how much time they spend in various sections of a store and what kind of products they buy and return, Lupo said. It has to be done in a proper way to not spook consumers, but in 5-10 years, an app may alert consumers to not buy white pants because they always return them or that there's a sale on Hugo Boss jeans, Lupo said.