RSSWal-Mart Expands Use of RFID Tracking
by Ed Oswald
Despite the best efforts of privacy advocates, Wal-Mart pressed forward with its plans to use RFID, saying it planned to roll out the technology to another 500 stores during this fiscal year. The expansion would mean over a quarter of the company's 3,900-plus stores, including its Sam's Club subsidiary, would use RFID to manage its inventory.
Wal-Mart's moves have not been without controversy. When the company's plans were first detailed in 2003, there was a near-immediate negative reaction from privacy advocates. Groups such as the Electronic Frontier Foundation claimed RFID threatened privacy and civil liberties, possibly allowing Wal-Mart to track its customers without their knowledge.
"Recent internal analysis of our ongoing efforts reinforces the value of this technology for Wal- Mart, our suppliers and ultimately our customers," Wal-Mart chief information officer Rollin Ford said. "We're aggressively moving forward with the expansion of RFID-enabled facilities."
Ford took over as the retail giant's CIO in April, and told CNET News.com at the time that "there will be no slowing down. RFID will transform the way we do business." He also oversaw the company's migration from Gen1 to Gen2 RFID, which occurred over the summer.
In addition, Ford will work with Wal-Mart's next 300 largest suppliers beyond the 300 already using RFID technology. When these companies go live with RFID in January 2007, over 600 companies will be using the inventory tracking devices in their shipping cases.
"We continue to work with suppliers to help them see the vast potential of RFID," Ford said. "We're already fully convinced of its value and are ready to step up the pace since we know we are only touching the tip of the iceberg when it comes to the benefits of this technology."
11 Comments
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RFID chips can lay dormant indefinatly. The life of an item as long as the chip stays on it can therefore be tracked, and you never know where RFID readers will be installed either. You may have one RFID which identifies you (Your CC card, your National ID card *shiver* or whatever) and then they can tell what items you're also carrying... your new ipod, what model it is. What type of cellphone you use, etc etc. List goes on, and all you had to do was to pass through the RFID reader at store X. That's revealing waaaaay too much information to people whom it does not belong.
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Yeah, next time when you are in Wallmart, "Target, or any other large chain store look up. Every one of those black globes has security camera(s) in them.
There are dozens, if not hundreds in all these stores. More than enough to watch your every move."
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They could put a million of them in stores as far as I'm concerned when I consider the billions these businesses lose every year due to shoplifting. While I am no fan of WalMart I fully support their decision to have the cameras present. Let 'em watch me. It doesn't bother me one bit.
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RFID technology is only controversial when it's in discussed in the context of tracking people (passports anyone?) or their purchases. This is not what Walmart is doing. They are simply pushing the envelope in supply chain innovation. The RFID tags are on pallets of product. Instead of receiving items manually, or via barcode scanners, the physical movement of pallets is tracked as they pass by the RFID readers (such as when receiving the pallets into the warehouse, as they're loaded on trucks, as they're received into stores, etc.).
Why is this scary? This type of tracking of goods is done now in every retail industry - except it's still being done with paper and pencil or barcode scanners; RFID is just the next step up in efficiency, and only a company as large as Walmart has the industry clout to make things happen in this arena.
Tracking people is still going to be an opt-in function of customer loyalty programs (discount cards, for example). What's scarier to me is when you have to give a clerk your phone number just to buy some batteries. Worried about being tracked? That's where it's happening.
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That is not the only case where it is controversial!
There are no regulations as to when or even if they must be deactivated (such as at the POS!).
Thus not only can someone or an establishment potentially track whatever you are carrying on your person or in your luggage with scanners at an establishments entrance, or even other stores in the mall, to determinie your buying habits, etc., let me propose a more lucrative model!
Just as thieves can passively sit in a car in a particular neighborhood, and with an easily modified scanner listen to your wireless home phone conversations (unless they are Spread Spectrum) as you tell you best friend when you are leaving to go to aunt Sally's for Christmas and when you are expected to return, but they can also listen to you as you order items over the phone from, say, Eddie Bauer, as you confidently provide your credit card information including the magic security ID! This is already a routine occurance. Are the thieves the only ones who get the potential of this???
But let's not stop there! It is just getting good!
You are Christmas shopping, and you have spent a Saturday running about town, going from store to store to find just the right gifts! And you are no dummy! You have adequately hidden your gifts in the trunk of your car! You're no fool! After all, theives could easily look into your windows and cherry pick the nice gifts if not adequately hidden.
But, as RFID readers are extremely cheap and totally unrestricted, one of those stupid criminals who are not nearly as swooft as you, but who happens to have just a modicum of initiative, happens to have a reader; and they proceed to discretely walk or drive about the crowded parking lot taking inventory of the contents of each car. Now, I realize the crooks aren't nearly as smart as you are, but do you see any potential for them to cherry pick the really nice gifts? I didn't think so! ;-)
Oh, and suppose you go to Vegas, and in your bag you have a book you bought from Amazon or Borders with techniques for improving your game of blackjack, or for that matter teaching you how to count cards. Of course the RFID inserted into the books spine was not disabled at time of purchase, and the hotel just happens to have a reader at each entrance. If I were you, I would get as many of those free drinks while you are still able!
Have your broken any rules? Are such books illegal?
And that is just a tip of the iceburg!
Are RFIDs useful? Sure, but just be sure you know whether you are buying or selling! ...or, even more importantly, broadcasting private information that you would rather not be communicated!
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I don't think the RFID stays with the product forever. It's either on the packaging or you can just tear the little sticky thing they use off. Unless I'm mistaken they don't actually bury it inside the product when it's made.
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Not yet, but there is discussion of actually embedding the tags into the material the product is made from. Info can be found here:
http://www.epic.org/privacy/rfid/
Apparently they are already embedded in tires. Info on that here:
http://www.rfidjournal.c...cle/articleview/269/1/1/
Searching embedded RFID tags will get you even more information.
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http://www.morerfid.com/...d=1541&display=RFID
In general, folks might want to find out what the technology and the industry are actually doing before posting opinions based upon feelings rather than facts.
And before anyone makes Wal-Mart out to be 'the' player pushing RFID, you might want to research the DOD RFID initiatives which, unlike Wal-Mart's, are non-negotiable.
Oh, and by the way above, you don't have to provide a phone number or zip code to buy anything, despite their request. And if providing personal infomation is such a threat when using credit cards or checks, try using that almost unknown commodity called cash.
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Groups such as the Electronic Frontier Foundation claimed RFID threatened privacy and civil liberties, possibly allowing Wal-Mart to track its customers without their knowledge.
Jeez, and I thought I was paranoid. Like they don't already track us via security cameras and data-mining.
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Yeah, next time when you are in Wallmart, Target, or any other large chain store look up. Every one of those black globes has security camera(s) in them.
There are dozens, if not hundreds in all these stores. More than enough to watch your every move.
Or if you wanted to really get paranoid just think what could happen if the FBI/NSA/whoever could get all these chains to hand over their CCTV footage. Retail stores, gas stations, resuturants - almost any public place has them. Track where you are, much much of what items you buy, the number of suspected terrorists you associate with, etc. I don't think they are, but it wouldn't really surprise me anymore.
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"Like they don't already track us via security cameras and data-mining."
And that makes it okay? Maybe for you, maybe NOT for me.
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