The University of Michigan has a new apparel contract with Nike worth about $170 million. Apart from the student-athletes sporting Nike garb, the contract included a clause that could have much larger implications. This clause could allow Nike to collect personal data from Michigan athletes with the use of wearable technology. Currently, that could be through heart rate monitors, GPS trackers and other devices that log biological activities. Eventually this could lead to information gathered through “smart clothing” which contains sensors in the wearable material. The concern is protection of the players because according to Tatiana Melnik, a health care lawyer, the federal Health Insurance Portability and Accountability Act does not apply to biometric data.
Other universities have contracts including health monitoring devices but Michigan’s allows Nike broad rights “to utilize” that information. There is a provision that the data will remain anonymous and comply with “all applicable laws” but there is a lack of regulation in this area and the threat of hacking. Many are concerned with the players being adequately represented because of their amateur status they have limited leverage to influence agreements such as this. Privacy experts say that the data could harm the student athlete’s future if it were to not remain anonymous. There is potential to reveal intimate details or harm future career opportunities.
The silver lining is that the contract appears to give the university a veto power of sorts: allowing the data to “be subject to university approval.” Although the information collection is limited to games, practices and other events where coaches or staff appear in official capacities, there is still a major concern for privacy. Privacy and athletes’ rights advocates worry that legal standards will be outpaced by the technology and some athletes may suffer.
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