One day, the company that makes this hammer says that they will be updating it to automatically tell the company a bunch of information about the hammer's use -- when it's used, where it's used, what the environment is like around the hammer, how many times it's used, what it's used for. They assure you that they don't care about who is using the hammer, but obviously it will be YOUR hammer reporting the information, so at some level it will be associated with you.
Why are they doing this? Well, they know that sometimes their hammers break. They only know this, though, because sometimes their hammers break for their own employees and sometimes customers tell them hammers break. They would really like to know ALL the times their hammers break, though, so that can try to fix all the problems with their hammers, and not just the ones they see or get reported to them. They say this will be best for their customers and that's why customers should be on board with the change.
No one would ever buy that hammer again, right?
Regardless of the privacy implications of the company knowing everything about your usage of the hammer, the company is basically saying that their hammers break so much that many of their customers don't bother telling them and just go use someone's hammer. In other words, their product is bad and their customers don't value it enough to deal with it.
Don't even get me started on paying monthly for that hammer ...