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How Will Tagged Drugs, RFID On Clothing, And Human Chips Affect Your Privacy?

With Florida about to pass a new law on July 1 that requires pharmaceutical distributors to document who takes possession of prescription drugs as they travel from manufacturer to retailer, item-level RFID tagging is fresh on everyone's minds. With instances of item-level tagging also appearing in the retail industry, concerns about violation of people's privacy are once again a hot topic.

A lot of activity around item-level tagging is happening in the apparel industry. U.K.-based Marks & Spencer last year expanded its RFID trial to 53 stores, where clothing sold in complex sizes, including men's suits and women's bras, is being individually tagged with passive RFID. Then there's Levis Strauss, which is tagging men's jeans sold in one of its U.S. stores and pants in two stores in Mexico. The retailers are hoping RFID will help them restock products faster, leading to fewer empty shelves. Of course, that means happier customers that will continue coming back to shop at these stores.

But the concept of RFID tags on individual items doesn't sit well with everyone. Many are concerned about privacy when it comes to tagging clothing, including situations where consumers walk out of stores with garments that still have RFID tags intact or situations where information stored in RFID tags is scanned at the point of sale and linked to the purchaser.

Don't panic, though. Marks & Spencer says it's taking extra steps to make sure consumer privacy isn't compromised. The retailer is providing an explanatory leaflet in its stores that outlines how the RFID tags work. The leaflet explains that the tag doesn't contain a battery, that it can be thrown away after purchase, and that it won't be scanned at checkout and therefore linked to the consumer. Levi says the tags on its pants are also removed upon purchase to eliminate consumer concerns of being "tagged."

On the vendor side, companies are launching efforts to lay the privacy groundwork for item-level tags. IBM in May said it developed a Clipped Tag that can be disabled on products after purchase and still have enough information for returns and recalls. A consumer can tear off part of the tag to remove a portion of its antenna, reducing the distance at which the tag can be read to about an inch. When intact, the tag can transmit a signal up to 30 feet, making it useful for stocking and inventory.

Should I open another can of worms? Last week, I interviewed Dr. John Halamka, CIO of Beth Israel Deaconess Medical Center in Boston, for my RFID feature running in InformationWeek on June 19, and he informed me that he had a human RFID chip implanted into his body two years ago. VeriChip, as it's called, is the size of a grain of rice and contains a unique 16-digit identifier. Halamka said he doesn't see RFID being implanted into everyone at birth, but it could be implemented in niche markets, including health care to help identify people like Alzheimer's patients. Although the chip has been cleared by the U.S. Food and Drug Administration for medical purposes, it raises a whole bunch of issues around future use and possible violation of privacy.

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