INDUSTRY VIEWS
LEGAL FRONTIERS OF WEARABLE TECH AI, DATA, AND HEALTH REGULATION CHALLENGES
Better, stronger business Through our diverse networks, our well-renowned Retail and Consumer team has developed a very real and organic connection with the wellness industry, guiding clients through the legal complexities of fundraising and investment opportunities to build even bigger, better businesses.
Technology and data are transforming the wellbeing and fitness sector with wearable tech devices and artificial intelligence (AI) sitting at the forefront. From Oura Rings to Apple Watches, wearable devices are becoming synonymous with fundamental fashion accessories as consumers become increasingly interested in improving their health and wellbeing based on detailed metrics and data. Whilst brands continue to innovate in this space, they are having to grapple with how to successfully develop and offer market-leading and cutting-edge products whilst remaining compliant in an evolving legal and regulatory landscape. We know this issue is not unique to the wellbeing, fitness and technology sectors, but it remains particularly important that this is tackled head-on for future industry growth. With this in mind, we have some key observations: Wearable tech devices are now essential for collecting granular and, arguably, rather intimate pieces of data (e.g., sleep patterns, heart function and body movement). The growing demand for accessible and instant health information is inextricably linked with the collection of significant amounts of personal data by brands – and notably, the processing of such personal data is governed by a stringent regime under the UK General Data Protection Regulation (UK GDPR). We are seeing the importance of brands keeping the overarching principles of the UK GDPR, including lawfulness, fairness, transparency, accuracy and accountability, front and centre given that devices remain vulnerable to data breaches and cyber security threats. It is therefore more pressing than ever that brands in the sector take robust and considered approaches to the protection of personal data to ensure compliance, not only from a legal perspective, but also from a reputational standpoint. AI systems, including machine learning AI, can be extremely effective tools for analysing vast data sets and use of these systems in the wellbeing and fitness sector is no exception. Whilst there is undoubtedly excitement about the potential associated with such innovation, it is important for brands and consumers in the sector to be alert to the limitations of AI, such as bias, lack of transparency and accountability and issues associated with accuracy, particularly where outputs from AI systems are being used to inform individuals’ health and lifestyle choices. It is helpful for UK-based brands that the UK government is taking a ‘pro-innovation approach to AI regulation’ but the influence from the EU, and specifically the effect of the EU AI Act, should not be underestimated. We expect that the appetite for greater use of technology and data in the wellness and fitness sector will continue to strengthen. With that in mind, both established brands and start-ups in the industry will need to remain well-informed, agile and willing to navigate the legal and regulatory challenges as they continue to evolve.
The future of fitness is digital – and legally accountable
GABY CARR Associate –
Technology, Media & Telecommunications, Pinsent Masons LLP
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STATE OF THE UK FITNESS INDUSTRY REPORT 2025
1697553
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