How You Will Be Monitored When You Shop
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When You Go Home, and - - - - - - - - - - - -
Radio Frequency Identification (RFID) Systems
Introduction | History | What you Can Do to Protect Your Privacy | EPIC Resources | News | Previous Top News| Resources
Top News
EPIC Proposes New Framework for Regulation of RFID in Health Care Settings. In a presentation to a committee of the Department of Health and Human Services, EPIC Executive Director Marc Rotenberg recommended the establishment of a new Four Tier Framework for RFID Regulation for medical information. The framework builds on EPIC's earlier Privacy Guidelines for RFID Technology . EPIC said that privacy rules should apply to most RFID applications and that additional safeguards will be necessary given RFID's unique tracking capabilities. EPIC proposed no privacy restrictions on the use of RFIDs in bulk products not associated with specific patients, but urged the prohibition of RFID implants. (Jan. 11)
EPIC Recommends Privacy Protections for RFID. In testimony before the House Energy and Commerce Subcommittee on Commerce, Trade, and Consumer Protection, EPIC Policy Counsel Cédric Laurant urged Congress to adopt a framework of fair information practices to govern collection of personal information through RFID. The testimony follows detailed comments (pdf), including EPIC's Privacy Guidelines for RFID Technology, filed at a Federal Trade Commission Workshop on RFID. (July 14)
EPIC Surveys the RFID Industry. EPIC recently surveyed developers and manufacturers of RFID technology, as well as retailers who have begun to employ RFID in the supply chain and in the retail setting. EPIC asked how they used RFID tags in the retail environment and requested details about how they were enabling customers to disable tags (a process known as "tag killing") or remove tags from retail merchandise. See survey. (June 23)
EPIC Urges FTC to Safeguard Consumers' Interests at RFID Workshop. In testimony to the Federal Trade Commission on radio frequency identification technologies, EPIC called for the adoption of strong Privacy Guidelines for RFID Technology to protect consumers against potential abuses of the tracking technology. (June 21)
Federal Trade Commission to host a public workshop on RFID in June. The workshop will explore the uses, efficiencies, and implications for consumers associated with RFID technology. It will address both current and anticipated uses of RFID tags and their impact on the marketplace. (April 12)
San Francisco library foregoes hearing and votes to fund RFID tracking. The San Francisco Library Commission voted to approve funding for the implementation of RFID chips in books and on other library materials before holding a hearing on the matter, which the Commission had promised to do. The ACLU and the Electronic Frontier Foundation are among the groups that oppose the RFID tracking at the library without implementation of privacy safeguards. (Mar. 2)
Metro AG scales back tracking technology. In the face of heated contention, the German Company Metro AG back-peddled away from their ambitious plans to start using RFID chips in supermarket loyalty cards for Extra Future Store. The supermarket had hoped to use the tracking system to verify ages of customers so that DVD trailers could be tailored accordingly. (Mar. 1)
The discount retailer Target announced plans to use RFID on all shipped pallets. Citing cost reduction, inventory accuracy and theft concerns, Target announced that it would implement RFID technology into all pallets of merchandise shipped to regional distribution centers. The company assured customers that they have no plans to use RFID transmitters to track customer purchases at this time. (Feb. 24)
A California design firm uses RFID to make Prada shopping very personal. California design company Ideo played a part in creating the Prada "experience" for return Prada shoppers. When a shopper enters the store carrying a frequent shopper card with a RFID chip, a store clerk instantly knows the shopper's preferences, past purchases and vital statistics before the shopper even starts to look around thanks to the clerk's handheld RFID reader. Once in the dressing room, which the card allows shoppers to reserve ahead of time, the RFID reader suggests coordinating pieces to match the items that the shopper selected, which are all displayed on a video screen. (Feb. 1)
Radio Frequency Identification (RFID) is a type of automatic identification system. The purpose of an RFID system is to enable data to be transmitted by a portable device, called a tag, which is read by an RFID reader and processed according to the needs of a particular application. The data transmitted by the tag may provide identification or location information, or specifics about the product tagged, such as price, color, date of purchase, etc. The use of RFID in tracking and access applications first appeared during the 1980s. RFID quickly gained attention because of its ability to track moving objects. As the technology is refined, more pervasive—and invasive—uses for RFID tags are in the works.
In a typical RFID system, individual objects are equipped with a small, inexpensive tag which contains a transponder with a digital memory chip that is given a unique electronic product code. The interrogator, an antenna packaged with a transceiver and decoder, emits a signal activating the RFID tag so it can read and write data to it. When an RFID tag passes through the electromagnetic zone, it detects the reader's activation signal. The reader decodes the data encoded in the tag's integrated circuit (silicon chip) and the data is passed to the host computer for processing.
RFID tags come in a wide variety of shapes and sizes. Some tags are easy to spot, such as the hard plastic anti-theft tags attached to merchandise in stores. Animal tracking tags which are implanted beneath the skin of family pets or endangered species are no bigger than a small section of pencil lead. Even smaller tags have been developed to be embedded within the fibers of a national currency.
While barcodes have historically been the primary means of tracking products, RFID systems are rapidly becoming the preferred technology for keeping tabs on people, pets, products, and even vehicles. One reason for this is because the read/write capability of an active RFID system enables the use of interactive applications. Also, the tags can be read from a distance and through a variety of substances such as snow, fog, ice, or paint, where barcodes have proved useless.
Currently, RFID tags are not widely used in consumer products because the price of the tags is still prohibitively expensive. However, as companies push for enhanced means of tracking products and profiling consumers, the increased demand and production of RFID technologies will drive down prices. Already, developments in RFID technology are yielding systems with larger memory capacities, wider reading ranges, and faster processing. In response, the market for RFID tags is growing explosively, projected to reach $10 billion annually within the decade.
RFID systems have gained popularity, and notoriety, in recent years. A driving force behind the rapid development of RFID technology has been the rise of pervasive commerce, sometimes dubbed the quiet revolution. Pervasive commerce uses technologies such as tracking devices and smart labels embedded with transmitting sensors and intelligent readers to convey information about key areas where consumers live and work to data processing systems. To gather this data, retailers can choose from a range of options.
RFID systems may be roughly grouped into four categories:
EAS (Electronic Article Surveillance) systems: Generally used in retail stores to sense the presence or absence of an item. Products are tagged and large antenna readers are placed at each exit of the store to detect unauthorized removal of the item.
Portable Data Capture systems: Characterized by the use of portable RFID readers, which enables this system to be used in variable settings.
Networked systems: Characterized by fixed position readers which are connected directly to a centralized information management system, while transponders are positioned on people or moveable items.
Positioning systems: Used for automated location identification of tagged items or vehicles.
These RFID systems enable business owners to have real-time access to inventory information, as well as a broader, clearer picture of consumers' buying habits. RFID technology also enables retailers and corporations to peek into the lives of consumers in ways that were, until recently, off limits. Products embedded with RFID tags can continuously transmit information ranging from an electronic product code (EPC) identifier, to information about the item itself, such as consumption status or product freshness. Data processing systems read and compile this information, and can even link the product information with a specific consumer.
This composite information is vastly superior—and more invasive—than any data that could be obtained from scanning bar codes, or even loyalty cards. Frequent shopper cards link consumers to their purchases, but this limited information gives retailers only a narrow view of a consumers' in-store purchasing trends. In contrast, RFID systems enable tagged objects to speak to electronic readers over the course of a product's lifetime—from production to disposal—providing retailers with an unblinking, voyeuristic view of consumer attitudes and purchase behavior.
Currently, RFID technology is still too expensive to be used by retailers en masse. The cost per electronic tag now stands at about 30 cents apiece, but is expected to fall to as little as three cents in the next three years. RFID tags will probably not become pervasive until the per chip cost dips below one penny. Retailers will still have to purchase sensors to read the tags, which can cost $1,000 each.
In spite of the costs, some retailers are willing to pay the price for the insight RFID tags provide into the lives of consumers. Over the next few years, industry experts expect to see a broad range of RFID pilots, and even several fully integrated systems, launched. A handful of corporations have already signed on, and are moving ahead with plans to embed products with RFID tags. Recently, Microsoft Corporation announced that it would develop software that will enable retailers, manufacturers, and distributors to use RFID tags to track goods within stores and factories, as well as programs specifically designed to use the new retail tagging technology.
Other proposed uses of RFID technology include:
Tracking apparel: Clothing maker Benetton planned to embed retail items with RFID tags. The implanted devices would enable Benetton to track individuals and inventory their belongings by linking a consumer's name and credit card information with the serial number in an item of clothing. Privacy advocates noted the potential abuses of a system, and Benetton agreed not to tag clothing with tracking devices—for now.
However, Marks & Spencer, one of the largest retailers in the UK, announced that it will begin tagging apparel items with ultra high frequency (UHF) tags beginning in Fall, 2003. UHF tags are a new generation of RFID technology that provide faster data transfer speeds and longer read ranges. Marks & Spencer has already used tracking devices extensively in its food supply division.
Tracking consumer packaged goods (CPGs): Gillette, Wal-Mart, and the U.K.-based supermarket chain Tesco are teaming up to test specially designed shelves that allow for real-time tracking of inventory levels. The "smart shelves" will be able to read radio frequency waves emitted by microchips embedded in millions of shavers and other products. Wal-Mart plans to test the Gillette shelf initially in a store located in Brockton, Mass. If the technology is successful, Wal-Mart also plans to join forces with Procter & Gamble to test a similar system with cosmetic products, and has encouraged its top 100 suppliers to use wireless inventory tracking equipment by 2005. So far, Wal-Mart executives say the company plans to use RFID chips only to track merchandise, and will remove the tags from items that have been purchased. However, Wal-Mart's decision to implement RFID technology will likely propel the ubiquity of the tags in CPGs.
Tracking tires: Tire manufacturer Michelin recently began fleet testing of a radio frequency tire identification system for passenger and light truck tires. The RFID transponder is manufactured into the tire and stores tire identification information, which can be associated with the vehicle identification number (VIN). Critics argue the tags could ultimately become tracking devices that can tell where and when a vehicle is traveling.
Tracking currency: The European Central Bank is moving forward with plans to embed RFID tags as thin as a human hair into the fibers of Euro bank notes by 2005, in spite of consumer protests. The tags would allow currency to record information about each transaction in which it is passed. Governments and law enforcement agencies hail the technology as a means of preventing money-laundering, black-market transactions, and even bribery demands for unmarked bills. However, consumers fear that the technology will eliminate the anonymity that cash affords.
Tracking patients and personnel: Alexandra Hospital in Singapore recently began a new tracking system in its accident and emergency (A&E ) department in the wake of the Severe Acute Respiratory Syndrome (SARS) scare. Under this system, all patients, visitors, and staff entering the hospital are issued a card embedded with an RFID chip. The card is read by sensors installed in the ceiling, which record exactly when a person enters and leaves the department. The information is stored in a computer for 21 days. Officials say that the technology enables health care workers to keep tabs on everyone who enters the A&E department, so that if anyone is later diagnosed with SARS, a record of all other individuals with whom that person has been in contact can be immediately determined. Other hospitals in Singapore are expected to adopt similar technology.
Payment systems: In 1997, ExxonMobil developed the wireless payment application known as Speedpass. Since then, six million consumers have utilized the payment option at 7,500 Speedpass-enabled locations. Now, a wide range of merchants and retailers are looking for ways to implement radio frequency (RF) wireless payment systems. Sony and Phillips are leading the way. The two corporations will soon begin field testing an RFID system called Near Field Communication (NFC), which will enable RFID communication between PCs, handheld computers, and other electronic devices. The companies envision that consumers will log on to their personal online portal by swiping their smart cart—embedded with a Sony or Philips RFID—which will be read by a RFID reader plugged into the USB port on the computer. Next, consumers would shop online, say, for tickets to a local event. The consumer would pay for the tickets online, download them to their PC and then transmit them with NFC technology to an RFID tag in their mobile phone. Then, at the event, consumers would wave their cell phone near a reader in the turnstile, and be automatically admitted.
What You Can Do to Protect Your Privacy
While corporate giants tout the merits of RFID technology, civil liberties advocates point out that the ability to track people, products, vehicles, and even currency would create an Orwellian world where law enforcement officials and nosy retailers could read the contents of a handbag—perhaps without a person's knowledge—simply by installing RFID readers nearby. Such a fear is not unfounded. Currently, some RFID readers have the capacity to read data transmitted by many different RFID tag. This means that if a person enters a store carrying several RFID tags—for example, in articles of clothing or cards carried in a wallet—one RFID reader can read the data emitted by all of the tags, and not simply the signal relayed by in-store products. This capacity enables retailers with RFID readers to compile a more complete profile of shoppers than would be possible by simply scanning the bar codes of products a consumer purchases.
Even the RFID industry itself is aware of the threat to privacy posed by the development and installation of tags in commonplace items. Consumers Against Supermarket Privacy Invasion and Numbering (CASPIAN) recently located internal public relations documents which detail how RFID developers plan to offset public opposition to the technology. The documents, prepared by Fleishman-Hillard, a communications consultancy, suggest that RFID industry leaders are planning a public relations campaign designed to counter opposition to the pervasive use of RFID technology. The documents detailing how such a campaign may unfold begin by outlining obstacles that hinder the widespread implementation of RFID technology. These obstacles include the facts that: "consumers are very concerned about invasions of their privacy," are "cynical about the government and private sector's commitment to protecting privacy," and are "inclined to believe that businesses have little incentive to protect consumers' personal information." In response, the documents cite the need for the development of a proactive plan that would "neutralize opposition" and "mitigate possible public backlash." One method of doing so suggested by the documents is through the creation of a Privacy Advisory Council made up of "well known, credible, and credentialed experts" who may be "potentially adversarial advocates." The documents cite EPIC as an example of such a potential council member. Although EPIC has been approached by others on this issue, EPIC will not serve on such a council or consult for other companies.
The proposed uses of RFID tags pose exponentially greater risks to personal privacy. Many technology experts predict the development of a seamless network of millions of RFID receivers strategically placed around the globe in airports, seaports, highways, distribution centers, warehouses, retail stores, and consumers' homes, all of which are constantly reading, processing, and evaluating consumers behaviors and purchases. In addition to undermining a consumer's ability to enjoy a lifestyle in relative anonymity, critics of the technology counter that the information gathered by RFID readers could be obtained by the government for surveillance or monitoring the activities of citizens, or even misused by hackers and criminals. Even more, the ever-expanding use of RFID chips would leave no aspect of life safe from the prying eyes of retail and corporate giants. Chips integrated into commonplace products such as floor tiles, shelf paper, cabinets, appliance, exercise equipment, and grocery and packaged products would allow even our most intimate activities to be monitored.
Opponents of RFID tags have proposed measures to side-step the chips' relentless information-gathering, ranging from disabling the tags by crushing or puncturing them, to simply boycotting the products of companies which use or plan to implement RFID technology. One way to destroy the tags is to microwave them for several seconds. Another method is to obstruct the information gathered by RFID readers by using blocker tags. When carried by a consumer, blocker tags impair readers by simulating many ordinary RFID tags simultaneously. Blocker tags can also block selectively by simulating only designated ID codes, such as those issued by a particular manufacturer.
In an attempt to soothe consumers' fears, companies have argued that most items tagged with RFID chips can't be tracked beyond an operating distance of about five feet. However, while this may be true today, industry experts say plans for building far more sensitive RFID signal receivers are in the works.
As RFID technology becomes more advanced, consumers may ultimately lose all ability to evade products implanted with chips. Corning researchers have developed tiny, barcoded beads that are invisible to the human eye. The microscopic beads can be embedded in inks to tag currency and other documents, and even attached to DNA molecules. They can also be added to substances like automobile paint, explosives, or other products that law enforcement officers or retailers have a strong interest in tracking. Researchers say the technology could be ready for commercial use in three to six years.
Previous Top News
- Tiny Antennas to Keep Tabs on U.S. Drugs, by Gardiner Harris, New York Times, Nov. 15, 2004.
- Privacy and AutoID, RFID News, May 2004.
- Privacy protection is not a luxury, RFID industry told, by Jo Best, Silicon.com, May 11, 2004.
- Wal-Mart turns on radio tags, by Matt Hines, ZDNET.com, April 30, 2004.
- RFID deadline hits a wall, study says, by Matt Hines, CNET News.com, March 31, 2004.
- Tracking tags may get congressional scrutiny, by Alorie Gilbert, CNET News.com, March 24, 2004.
- RFID goes to war, by Alorie Gilbert, CNET News.com, March 22, 2004.
- RFID Revolution: Are we close?, by Matt Hines, ZDNET.com, March 3, 2004.
- California lawmaker introduces RFID bill, by Alorie Gilbert, CNET News.com, Feb. 24, 2004.
- 'Smart shelf' test triggers fresh criticisms, by Alorie Gilbert, CNET News.com, Nov. 14, 2003.
- RFID Ripples Through Software Industry, by Ephraim Schwartz, InfoWorld, Sept. 26, 2003.
- Microsoft to Develop Software for Radio Tags, Reuters, June 10, 2003.
- Retail future: painless checkout, knowing scanners, by Paul Hoskins, Forbes, May 14, 2003.
- Sony, Philips to Test RFID Platform, RFID Journal, May 8, 2003.
- Benetton takes stock of chip plan, by Winston Chai and Richard Shim, CNET News, April 7, 2003.
- Glowing Beads Make Tiny Bar Codes, Technology Research News, April 3, 2003.
- Wal-Mart to remove ID tags, by Joanna Glasner, Wired News, March 26, 2003.
- A Radio Chip in Every Consumer Product, by Claudia H. Deutsch and Barnaby J. Feder, NY Times, Feb. 25, 2003.
- Opposition to RFID Tracking Grows, RFID Journal, Jan. 20, 2003.
- Michelin Embeds RFID Tags in Tires, RFID Journal, Jan. 17, 2003.
- RFID tags: Big Brother in small packages, by Declan McCullagh, CNET News, Jan. 13, 2003.
- Major retailers to test "smart shelves," by Alorie Gilbert, CNET News, Jan. 8, 2003.
- Gillette Confirms Purchase of EPC Tags, RFID Journal, Jan. 6, 2003.
- Radio Frequency ID: A New Era for Marketers?, by John Stermer, Consumer Insight, Winter 2001.
Coalition Recommends Privacy Practices for RFID. EPIC and a coalition of privacy organizations have released a position paper on the use of RFID in consumer products. The paper, which was delivered at a RFID Policy Workshop at MIT, recommends a framework of Fair Information Practices for data collected by the technology. (Nov 17, 2003)
Secret RFID testing amid denials. Wal-Mart and Procter & Gamble recently admitted to secret RFID testing of consumers who interacted with Lipfinity brand lipstick in an Oklahoma Wal-Mart store earlier this year. Triggered by a RFID tracking device imbedded in the lipstick packaging, consumers were videotaped when they had contact with the product. The revelation contradicts repeated assurances by Wal-Mart that it was not conducting such tests on consumers. (Nov. 12, 2003)
Marks & Spencer has begun using RFID in the U.K. The retailer Marks & Spencer, a U.K.-based retailer, has already begun using RFID technology in clothes and in returnable food delivery trays. The retailer hopes the technology will increase stock accuracy and thereby facilitate product accessibility for shoppers. While the RFID tags are attached to certain items, Marks & Spencer assures that the tags can be removed from clothing, and the collection of information about shoppers will be restricted. The implementation of the RFID technology is just in the trial stages, according to the company, and the success of the program will be assessed after a month. (Oct. 16, 2003)
U.S. Department of Defense Requires RFID tags on all DoD Purchases. The DoD plans to require RFID tags on all products purchased by 2005 in order to "improve [the Department's] business functions and facilitate all aspects of the DoD supply chain," according to the Department. The DoD plans to use the Electronic Product Code (EPC) technology which is under development by the Uniform Code Council. This move is predicted to hasten the deployment of RFID tags and lower the cost by increasing visibility and demand for the technology. However, while the producers of the tags expect a huge financial benefit, the cost of the implementing the technology will fall on suppliers, who will likely then transfer the cost to consumers. (Oct. 13, 2003)
RFID Developers Public Relations Plans Revealed. Consumers Against Supermarket Privacy Invasion and Numbering has located a number of internal public relations documents that discuss how Radio Frequency Identification (RFID) developers plan to "neutralize opposition" to the technology. The documents, prepared by Fleishman-Hillard, suggest that: "Political climate and shifting public perception require a proactive plan that…mitigates possible public backlash" to RFID adoption. (Jul. 7, 2003)
Benetton: No Microchips in Clothes (Yet): Italian-based clothing company Benetton announced that it has not put Radio Frequency Identification (RFID) tags in its clothing, despite some reports to the contrary. The company said it will undertake a study of the tracking technology, "including careful analysis of potential implications relating to individual privacy." Consumers Against Supermarket Privacy Invasion and Numbering had organized an anti-RFID boycott of the international clothes manufacturer and vendor. For more information, see Junkbusters' page on RFID. (Apr. 7, 2003)
- Food and Drug Administration, "Radiofrequency Identification Feasibility Studies and Pilot Programs for Drugs - Guidance for FDA Staff and Industry - Compliance Policy Guides" (Nov. 16, 2004).
- Ontario Information and Privacy Commissioner, Tag, You're It: Privacy Implications of Radio Frequency Identification (RFID) Technology (February 2004).
- Materials submitted at the Massachusetts Institute of Technology RFID Privacy Workshop (November 2003).
- International Conference of Data Protection & Privacy Commissioners, Resolution on Radio-Frequency Identifiation (November 20, 2003).
- Cynthia Leonardatos, Paul H. Blackman, & David B. Kopel, Smart Guns/Foolish Legislators: Finding the Right Public Safety Laws, and Avoiding the Wrong Ones, 34 Conn. L. Rev. 157, (Fall, 2001).
- Timothy P. Terrell, Anne R. Jacobs, Privacy, Technology, and Terrorism: Bartnicki, Kyllo, and the Normative Struggle Behind Competing Claims to Solitude and Security, 51 Emory L.J. 1469, (Fall, 2002).
- CASPIAN (Consumers Against Supermarket Privacy Invasion and Numbering) is an information clearinghouse and resource for community and national action opposing consumer tracking devices, such as loyalty cards and RFID tags.
- CASPIAN has proposed federal legislation known as "RFID Right to Know Act of 2003," which calls for mandatory labels on RFID-equipped products so that consumers can identify and make informed choices about purchasing products installed with tracking chips. CASPIAN issued a press release outlining the proposed legislation on June 11, 2003.
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