How Will Microchips Affect Your Privacy

This interesting BBC News piece argues that the real benefits of RFID -- tracking the movement of stock from a manufacturer to your corner grocery store -- could be undermined by the public's perception.

If RFID is used for used for purposes that will limit your freedoms, like the expensive "chipping" of farm animals that will cause many small farmers to go out of business and not sell you high quality food, then they are clearly not in your best interests.

Some experts, including Internet guru Vint Cerf (who recently joined Google), remain wary about whether manufacturers are really collecting stock data or collecting personal information.

The problem isn't the ability of a business to track the sale of its own goods; the ability to monitor RFID tags inexpensively outside businesses in your home, and the subsequent invasion of your privacy, is the primary concern. Precautions need to be taken to keep this from becoming a problem.

The advantages of RFID technology are obvious: No more lost shipments. Stores will receive the right amount of items. Experts estimate a retailer the size of Wal-Mart could save as much as $7.6 billion each year in labor costs if every pallet of stock came a RFID tag.  The technology also allows retailers to reduce or raise prices at a moment's notice with the ebb and flow of daily business.

But it's technology that needs to be handled sensibly in terms of your privacy, or it could end up creating far more problems than it solves.

Some have actually resorted to popping these items in their microwave as the microwave radiation actually causes many of the RFID to explode or become deactivated, thus effectively crippling their eavsdropping potential on your purchasing habits.

There is also the concern about measuring these RFID tags. They have to be scanned with a radio emitter to activate them and these emitters use either a High Frequency 13.56MHz, with a nominal range of 5 yards, or an Ultra High Frequency 868MHz.