Spy Chips

    Written by Katherine Albrecht and Liz McIntyre 
   State and federal lawmakers have joined a growing chorus of people sounding the alarm over RFID, a new technology with enormous potential for invading privacy. RFID has prompted bills in California, Utah, Missouri and Massachusetts, and raised the concern of civil liberties and privacy groups from around the world. Once you understand the stealthy nature of the technology, we think you'll agree that the privacy concerns it raises warrant immediate attention.

A Brief Introduction to RFID

RFID stands for Radio Frequency Identification, a tracking technology that uses tiny computer chips to identify items from a distance. We've nicknamed them “spychips" because of their stealthy potential. These chips are connected to miniature antennas so they can beam back information about items to which they are attached, invisibly and silently by radio waves.

These waves are similar to the ones used to broadcast FM radio programs. Like FM radio waves, RFID radio waves can travel through solid objects such as walls, briefcases, purses, and wallets -- the things we normally rely on to protect our privacy.

RFID chip and antenna combinations, called "tags," typically range from the size of postage stamps to the size of pagers. Some can be as small as the period at the end of this sentence. RFID tags without an independent power source, called "passive" tags, can transmit information from a couple of inches away to up to 20 or 30 feet. Tags with attached batteries can transmit information up to a mile or more.

RFID tags can be embedded into or affixed to virtually any physical item, from car tires and aircraft parts to underwear and eyeglasses. They can be undetectable when sandwiched between layers of cardboard, incorporated into product labels, encapsulated in plastic, or sewn into the seams of clothing.

RFID first hit the business headlines in 2003 when Wal-Mart and the Department of Defense issued requirements that companies supplying their inventory must invest in the technology. Both have mandated that their top suppliers affix an RFID tag to every crate and pallet slated for delivery to them. Other retailers, such as Albertsons and Target, have followed suit with RFID mandates of their own. These "supply chain" retailer mandates have fueled investment in RFID technology and the infrastructure required to implement it.