http://www.wired.com/news/privacy/0,1848,59624,00.html

Claim: RFID Will Stop Terrorists  


By Mark Baard  |   Also by this reporter  Page 1 of 1 

02:00 AM Aug. 08, 2003 PT

Facing increasing resistance and concerns about privacy, the United
States' largest food companies and retailers will try to win consumer
approval for radio identification devices by portraying the technology as
an essential tool for keeping the nation's food supply safe from
terrorists. 

The companies are banding together and through an industry association
are lobbying to have the Department of Homeland Security designate radio
frequency identification, or RFID, as an antiterrorism technology. 

In addition, they are asking members of Congress and other influential
figures to portray RFID in a favorable light. 

Companies like Procter & Gamble, Wal-Mart and Johnson & Johnson see RFID
technology as a godsend. By implanting tiny radio transponders in their
product packaging, the companies can instantly track their goods from
factory floors all the way to retailers' warehouses. What's more,
retailers can get a 100 percent accurate inventory of products on their
shelves instantly with RFID detectors. Taking inventory now involves
countless hours of overnight work with inaccurate results. 

Experts estimate industry could save billions of dollars each year in
inventory and logistical costs with RFID. Trouble is, privacy advocates
see RFID as a massive invasion of privacy. They say the technology would
let retailers, marketers, governments or criminals scan people -- or even
their houses -- and ascertain what they own. The technology hasn't been
rolled out widely yet, but already it's causing controversy. Earlier this
summer, Wal-Mart caved to protests and pulled radio-tagged items out of a
store in Brockton, Massachusetts. 

To win the hearts and minds of consumers, retailers and food and drug
companies may portray the technology as an antiterrorist tool. They say
the technology can help them keep precise track of all goods and help in
recall efforts should their products be contaminated or laced with poison
during a terrorist attack. 

The Auto-ID Center, an RFID consortium, presented its technology to
Homeland Security Secretary Tom Ridge in Washington, D.C., last year. In
fact, many Auto-ID Center sponsors consider Ridge's blessing to be key to
public acceptance. An internal presentation by Fleishman-Hillard, the
powerhouse PR firm that advises the center, lists Ridge as a "top-tier
opinion leader." And the minutes (PDF) of another meeting, attended by a
representative of the Department of Defense, records a group statement
that the technology will catch on "when the government mandates it for
homeland security reasons." 

The center also has targeted Sens. John McCain and Patrick Leahy, and
Reps. Charles Dingell and Billy Tauzin, for recruitment to help Americans
overcome their suspicions about RFID tags on consumer goods. 

Members of the privacy rights group Caspian uncovered the Auto-ID Center
documents, which are marked "confidential," in early July. 

With Ridge's approval for RFID, the food and drug companies and retailers
hope to win over a wary public. They also may get legal protection under
the Safety Act of 2002 -- a tort-reform law that offers blanket lawsuit
protections to makers of antiterrorism devices, should those devices fail
during a terrorist attack. 

"If we get a declaration from Homeland Security that this is the step we
need to take to protect the food supply, that's the step it will take to
move this technology forward," said Procter & Gamble supply-chain
executive Larry Kellam at an RFID industry conference in June. 

Procter & Gamble and other Auto-ID Center sponsors -- including Sara Lee,
Kellogg, Nestle, Coca-Cola, Pepsico, Johnson & Johnson and Pfizer --
lobbied lawmakers and officials last year for the lawsuit protections
that they now hope will apply to RFID technology. 

"We have been working with legislators to make sure the right regulations
are in place to make RFID tags commercially feasible," said Stephanie
Childs, a spokeswoman for the Grocery Manufacturers of America, which
lobbied on behalf of the food and drug companies and retailers. 

But not all legislators on Capitol Hill are buying into RFID tags,
especially when they see companies playing the terrorism card to gain
acceptance for the technology. 

"We would never support legislation to prevent businesses from using RFID
the way they want to," said Jeff Deist, a spokesman for Rep. Ron Paul
(R-Texas), who is a staunch privacy rights advocate. "That's a question
for the marketplace. But once the Homeland Security Department gets
involved, that's another story entirely." 

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