Privacy advocates ask FTC for RFID technical review

IDG News Service - Privacy advocates yesterday called for the U.S. Federal Trade Commission or other government agencies to begin a comprehensive assessment of the potential effects of radio frequency identification technology. The requests came during an FTC workshop on RFID.
The FTC or other agencies could conduct an "impartial" assessment of RFID and its potential effects on privacy, said Beth Givens, director of the Privacy Rights Clearinghouse. Some advocates who trumpeted RFID's potential to reduce supply chain costs called for a public education campaign to teach the public about the potential positive uses of RFID, but Givens said a public campaign should also include privacy concerns.
"It's very important to distinguish between a true consumer education campaign and a public relations campaign," she said.
RFID uses small computer chips and antennas that are integrated into a paper or plastic label. Those chips can then be read by an electronic scanner from distances of up to 25 feet. Wal-Mart Stores Inc. plans to phase in use of RFID, with major suppliers of its north Texas stores required to use the chips on pallets and cases by January. The U.S. Department of Defense also plans to require suppliers to use RFID tags by early 2005.
Even though most panelists at the workshop said widespread item-level RFID tagging, on products such as clothing and electronics, is years away, it's not too early to think about the privacy implications, Givens said. Growing media coverage of RFID and privacy concerns is why a large-scale technology assessment is needed now, she said.
The daylong RFID workshop in Washington included panel discussions on current and anticipated uses of RFID chips and on best practices for using the information stored on the chips. RFID advocates talked of its potential for makers of consumer goods, retailers and even consumers. RFID will allow retailers to track products in their supply chains, making for more efficient movement of goods, said Dan White, technical evangelist for RFID in the New Technologies Retail Solutions division at NCR Corp.
A major problem for retail stores is when products are misplaced on the shelves. A more efficient supply chain will eventually result in lower prices to consumers, White said. "The key thing in retail is if you can't find it, you can't sell it," he said.
Eventually, consumers will be able to buy RFID chips and readers and find things that are easily lost, including car keys and TV remote controls, White added.
Most consumers, however, don't know what RFID is, said John Parkinson, vice president and chief