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----- Original Message -----
From: R.L. Johnson
To: ccnn
Sent: Wednesday, February 25, 2004 7:21 AM
Subject: [CCNN] Mark of the Beast Report...California lawmaker introduces
RFID bill
California lawmaker introduces RFID bill
By Alorie Gilbert
Staff Writer, CNET News.com
http://news.com.com/2100-1014-5164457.html
Story last modified February 24, 2004, 4:10 PM PST
A California state lawmaker introduced a bill on Tuesday meant to address
consumer privacy concerns related to the commercial use of radio frequency
identification technology.
Senate Bill 1834 would apply to any business or state government agency
using radio frequency identification (RFID) systems to track merchandize or
people--an activity that's on the rise. According to people familiar with
the technology, state Sen. Debra Bowen is the first legislator in the nation
to introduce a bill that seeks to govern the use of RFID, a technology that
has sparked controversy since retailers began experiments last year.
The bill proposes that businesses and agencies be required to notify people
that they're using an RFID system that can track and collect information
about them. It would also require consumers to give express consent before
businesses or agencies could track and collect information about them via
RFID. Lastly, the legislation requires retailers to detach or destroy RFID
"tags" on merchandize before consumers leave the store with it.
"The privacy impact of letting manufacturers and stores put RFID chips in
the clothes, groceries and everything else you buy is enormous," Bowen said
in a statement. "There's no reason to let RFID sneak up on us when we have
the ability to put some privacy protections in place before the genie's out
of the bottle."
Privacy concerns over RFID began to surface last year when retailers,
including Wal-Mart Stores and British grocery chain Tesco, began testing the
technology in stores, often in trials that involved unwitting consumers. The
so-called smart-shelf trials were designed to help retailers monitor
inventory and detect theft, but consumer advocates fear such systems could
lead to surveillance on an unprecedented scale. Facing criticism, Wal-Mart
discontinued the in-store testing and said it planned to use RFID to improve
its distribution process instead.
RFID has existed for years, but many industries are finding new commercial
uses for it. Led by Wal-Mart, Gillette and Procter & Gamble, companies are
starting to use the technology in hopes of reducing inventory errors and
keeping stores well stocked. In addition, the U.S. military plans to use
RFID to keep supplies flowing to troops and military bases. The technology
works by placing special microchips on all sorts of items, enabling them to
automatically broadcast their whereabouts through radio signals that talk to
computer networks.
The roster of high-tech companies developing hardware and software
specialized for RFID includes Intel, Microsoft, Oracle, SAP and Sun
Microsystems, and is rapidly growing. Many hope to cash in on what analysts
say will be a multibillion-dollar market within the next five years.
Consumer advocate Katherine Albrecht lauded Bowen's bill, noting that it
could have a national impact because so many companies do business in
California. "It's very disturbing, this idea that you could be wearing a
homing device of sorts and have no way of protecting yourself or even
knowing about it," Albrecht said. "(This bill) is long overdue."
Albrecht is the head of a nonprofit group called Consumers Against
Supermarket Privacy Invasion and Numbering.
Jack Grasso, a spokesman for the pro-RFID group EPCglobal, said his group
hasn't yet taken a position on the bill but that privacy was top priority
among EPCglobal members, which include many of the major names in retail,
consumer goods and high-tech. "We believe this technology could be of
enormous benefit not just to retailers but to consumers across the globe,"
he said.
Retailers expect to save billions of dollars by using RFID systems to cut
inventory costs. RFID advocates say those savings could be passed down to
consumers in the form of lower prices and warn that unwise RFID legislation
could interfere with such benefits.
EPCglobal, which is a branch of the Uniform Code Council--the group that
administers bar codes, has formed a lobbying group with the help of Procter
& Gamble, Gillette, the National Retail Federation and others, Grasso said.
The group seeks to influence public policy and has already met with members
of Congress, he said.
Bowen, who chairs the Senate Subcommittee on New Technologies, has been an
active sponsor of technology-related legislation, introducing bills that
would regulate spam, face recognition technology and consumer data
collection. She held two hearings on RFID technology and privacy last year
where Albrecht and others called for RFID legislation.
Related News
a.. 'Smart shelf' test triggers fresh criticism November 14, 2003
http://news.com.com/2100-1017-5107918.html
b.. Taking Microsoft to task on spam September 3, 2003
http://news.com.com/2008-1082-5070492.html
c.. MIT to uncork futuristic bar code August 29, 2003
http://news.com.com/2100-1017-5069619.html
d.. Privacy advocates call for RFID regulation August 18, 2003
http://news.com.com/2100-1029-5065388.html
e.. Wal-Mart cancels 'smart shelf' trial July 9, 2003
http://news.com.com/2100-1017-1023934.html
f.. RFID tags: Big Brother in small packages January 13, 2003
http://news.com.com/2010-1069-980325.html
g.. Get this story's "Big Picture"
http://news.com.com/2104-1014-5164457.html
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