The most important legal aspect of using RFID technology relates to the infringement of individual privacy rights. RFID systems have the potential to track individuals in an unprecedented manner. If tags are placed on bags, clothing, cosmetic products, or any single retail item for that matter, information about the item can be linked to the purchaser to provide a more complete consumer profile.
For example, when a RFID tag is read, information from the tag could be linked to a purchaser's financial information if the product was purchased with a credit card or loyalty card. Moreover, it is possible for a reader to read tags covertly without the consumer's knowledge. It is also possible that a reader can be set up to read tags from other stores. This means that a reader might be able to determine the contents in a consumer's purse or bag without the consumer even being aware.
Further and aside from the possibility of tracking consumers in the marketplace at anytime or anyplace, which in itself raises significant privacy concerns, RFID tags can be used to track "sensitive-type" items such as pharmaceutical products or even currency. If tags are left active, government and industry can track how you use your money, and what kinds of pharmaceuticals you take.
This presents significant legal problems as our health, financial and other types of "sensitive" information is not normally allowed to be collected, used or disclosed without our consent.
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