RFID (Radio-Frequency Identification) is a tiny wireless
technology which has the potential to radically transform the
commerce world. It consists of an inexpensive chip, often
smaller than a grain of sand, which can be read up to several
meters away. The hope among retailers, is that the technology
can be used as a next-generation barcode, automating inventory
levels, and thus cutting costs for manufacturers and retailers.
While the technology does offer some potentially remarkable
opportunities, it also raises some concerns with regard to
individual privacy and corporate espionage.

While barcode-type RFID tags are not likely to reach consumers
on a regular basis in the near future, there is little doubt
that with the success of early trials, they eventually will.
Consequently, concerns about privacy infringement with regard to
RFID are important not only in the theoretical sphere, but
increasingly such discussions have vital practical applications.

SPECIFIC PRIVACY CONCERNS

RFID tags differ from conventional barcode tags in a number of
ways. It is these differences that create the benefit of
adopting the technology, while simultaneously creating the
greatest concern over the privacy issues involved. For example,
under today's bar code technology, a pack of Wrigley's Gum sold
in Houston, Texas has the same barcode as a pack sold in New
York City or Ontario. With RFID, however, each pack would have a
unique ID code which could be tied to the purchaser of that gum
when they use an 'item registration system' such as a frequent
shopper card or a credit card.

Continuing with the Gum example, the purchaser could then be
tracked if he/she ever entered that same store again, or perhaps
more frightening, if they entered any other store with RFID
reading capability. Because unlike a barcode, RFID can be read
at a distance of up to a few yards. Meaning that if you enter a
store with a pack of gum in your pocket, the reader can identify
that pack of gum, the time and date you bought it, where you
bought it, and how frequently you come into the store. If you
used a credit card or a frequent shopper card to purchase it,
the manufacturer and store could also tie that information to
your name, address, and email. You could then receive targeted
advertisements by gum companies as you walk down the aisle, or
receive mailings through your e-mail or snail mail about other
products.

As the technology behind RFID advances, the potential for
privacy infringement does as well. A more recent development is
a study which reveals that RFID already has the capability to
determine the distance of a tag from the reader location. With
such technology already available, it is not difficult to
imagine a situation in which retailers could determine the
location of individuals within their store, and thus target
specific advertisements to that customer based upon past
purchases. In effect, that store would be creating a personal
log of your past purchases, your shopping patterns, and
ultimately your behavioral patters. While such information
gathering would be considered intrusive enough by many
consumer's standards, the danger that such information could be
sold to other retailers, (similar to the way such profiles are
currently sold regarding internet commerce), could create
potentially devastating information vulnerabilities. While some
RFID critics have pointed out that the technology could lead to
some sort of corporate 'Big Brother' there is a more widespread
concern that allowing RFID to develop without legal restrictions
will eliminate the possibility for consumers to refuse to give
such information to retailers.

COUNTER-MEASURES

Despite these and other such dangers, however, there are some
steps being taken to mitigate these privacy issues. For example,
a recent proposal would require that all RFID-tagged products be
clearly labeled. This would give consumers the choice to select
products without RFID, or at a minimum to recognize that the
items they select are being tracked. For those unsatisfied with
disclosure, there also exist a growing number of products
designed to limit their exposure to RFID tagged products. One
such product is ìKill Codesî a command which turns off all RFID
tags immediately as the consumer comes into contact with them,
thus entirely eliminating the effectiveness of the technology.
Another proposal, however, ìRSA Blocker Tagsî, try to address
privacy concerns while maintaining the integrity of the product.
Under this technology, the item can only be tracked by that
store's authorized reader, meaning that customers cannot be
tracked outside of the store in which they purchased the item.

CONCLUSION

While some of the dangers posited here seem far-fetched and
unlikely, the technology already exists and is developing
rapidly to ensure that such hypotheticals can become realities.
RFID tags have the potential to revolutionize the shopping
experience by bringing us targeted products and allowing
retailers and manufacturers to track purchases and shopper
behavior more accurately and cost-effectively. The concern,
however, is that if we are not aware and careful about the
potential abuses of such technologies early on, we may fail to
incorporate them at a time when the laws and mores of such a
system are still developing, ultimately suffering the
consequences later on.