RFID Systems Under Increased Scrutiny by Legislators and Regulators

The California Senate’s passage last month of legislation that would restrict the use of radio frequency identification (RFID) systems and the FTC’s plans to host a public workshop next month regarding the implications for consumers of this item-tagging technology are certain to heighten regulatory scrutiny of RFID systems.

RFID tags are tiny chips that can transmit a unique code or other data to an RFID reader a short distance away through a variety of substances such as paint, snow, or ice. When RFID chips are affixed to products or implanted in animals or humans, an RFID system can automatically identify, locate, and track RFID-tagged items without the need to touch them. Toll booth E-Z Passes and the ExxonMobil Speedpass wireless payment system are examples of early applications of RFID.