A system and method for collecting data on usage of towels or other folded web products. The system includes one or more product dispensers having a respective sensor arrangement associated therewith for determining product usage. For example, a plurality of piezoelectric transducers may be situated about the throat of a product dispenser to generate a detection signal as sheets are withdrawn by a user. Detection signals produced by the transducers are fed to signal condition circuitry, the output of which is fed to a local processor. Selected benchmark information is derived by the local processor, and is transmitted, such as by wireless techniques, to a central data collection unit. The central data collection unit includes a processor which compares the benchmark information against predetermined data to produce the desired usage information.