03/26/2008: "Law Prohibits Spying On Consumers"

A new law sponsored by state Rep. Jeff Morris, D – Mount Vernon, and signed by Governor Gregoire on Tuesday, will provide consumers better protection from the misuse of so-called “spy technologies” that can be used to collect personal information without your knowledge.

Of the two types of tags (no independent power source, called "passive", and "active" types that have power), only active tags have a range of miles, but the passive type used in consumer products have a range of inches, up to 40 feet.

Few consumers are aware they could be transmitting personal information about their identity and the products they buy to just about anyone or any business equipped with a simple microchip reader. Many consumers already carry one of these radio-frequency-emitting chips wherever they go, whether in an ID card, a cell phone, or possibly even in their shoes, however RFID labels reportedly serve only to trigger an alarm if a consumer leaves the store without paying for the shoes.

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The technology is called radio-frequency identification (RFID) chips and their uses are only beginning to be realized. RFID-based systems are now being used by some school systems to allow only authorized pupils to leave the campus during lunch, or to enter the student lounge. Another use is temperature-tracking RFID tags that are placed in fresh concrete on large pours to track the temperature range of the concrete as it cures.

IBM is involved, but their interest lies in the uses of the chips to aid commercial tracking of inventory. IMB examples are:
* RFID smart tags provide real-time data from the supply chain, into the stock room and out to the selling floor.
* Tagged items reveal their location, eliminating the need to manually check stock.
* RFID shelf readers automatically notify the back-office system when stock runs low, initiating the restocking process.
* The system also traces how quickly stock is being sold, identifying more- and less-popular items.
* At checkout, a final scan of tagged articles rapidly updates the store’s inventory.

That’s why commercial industries are pouring billions – with the potential to gain as much - into the technology to track who you are, where you go, what you buy, and what you do with it.

Some aspects of these RFID chips will certainly be helpful – they can help speed up checkout lines and tolls, or might someday work in conjunction with your refrigerator to check off your grocery list. More personalized shopping experiences are among the first efficiencies already being utilized by some retailers.

Imagine the potential for misuse then, say some consumer advocates. It conjures up images or scenes from sci-fi movies like Minority Report. For instance, a shopper walking into a store could unknowingly transmit their identity and whereabouts via a membership card, while they pick out items and make their final purchases. That information then goes into a database for further analysis and targeted marketing schemes.

Or, more ominously, a potential thief could circle a neighborhood reading the transmissions coming from each house and picking his target based on the content of the home via a handheld RFID reader.

In another not-too-distant-future scenario, law enforcement attempting to squelch an unruly mob could gather the identity of everyone in the vicinity – guilty parties and passersby alike – with the click of a chip reader.

The practice is called “skimming,” and if the chips were contained in your products or even in your clothes without your knowledge, which could already be the case, you would have no idea.

The only way to stay ahead of the technology, according to Rep. Jeff Morris, is to begin staking out our individual privacy rights now before it’s too late.

The new law – the first of its kind in the U.S. - makes it a Class C felony to intentionally scan another person’s identification using a remote device without his or her knowledge and consent, for the purpose of fraud, identity theft, or some other illegal purpose.

Morris admits it’s been an uphill battle to win even this small yet commonsense protection for consumers. After years of advocating for stronger protections, including an opt-in requirement for retailers to abide by that was included in the original version of Morris’ bill, corporate lobbyists have fought to kill it every step of the way. These business interests have remained steadfastly intent on allowing the spy chips to remain unregulated as they quickly move to embed them in any or all products imaginable.

Morris does not intend to give up the fight, however. “This is just one small step to stake out some boundaries around our individual consumer rights before it’s too late. The battle now that criminal acts are covered is deciding whether or not spying on consumers for marketing purposes without their consent is criminal.”

The new law goes into effect this July, 2008.