How it Works
Radio frequency identification (RFID), is a type of technology that uses radio waves to automatically identify people or objects. A tiny chip hooked up to an antenna can be embedded in, printed on, or stuck to an item; the antenna picks up electromagnetic energy from a reader device. When it picks up the energy, the chip sends back a unique identification number to the reader, allowing the item to be remotely identified.

Current Uses
RFID tags are used for animal identification (pets embedded with a microchip can be returned to their owners), beer-keg tracking and automobile anti-theft systems. Also, libraries and bookstores make use of the technology by tagging books; tags are embedded in identification badges (instead of magnetic strips), and are commonly used in airline baggage tracking. RFID tags are also used commercially in pallet and container tracking and truck and trailer tracking in shipping yards. The technology is also used in long-range access control for vehicles, like General Motors' OnStar system.

Potential/Hopeful Uses
Several business are beginning to use RFID technology in hopes that it will help improve efficiency throughout their operations. Some are using it to help on the shipping and receiving side of business: RFID has the ability to help grocers track and organize on the case and pallet level. Products can be instantly located as they flow through the supply chain, ensuring that the right products are in the right place at the right time.

Others are selling RFID-tagged merchandise, using the technology as a replacement for the current UPC bar code scanning process. Proponents of the technology say that RFID-coded merchandise is a shoplifting deterrent, and it helps to make for easier gathering of sales and marketing information. In the near future, RFID technology could eliminate lines at check-out: a consumer could gather all of the items he or she wants, and walk out of the store. The merchandise needs to pass within 25 to 30 feet of a receiver, unlike a UPC barcode scanner. Grocery shopping could become as easy as driving your car through the EZ pass toll booths.

Controversy
With technology as powerful as RFID comes a lot of privacy concerns. Consumer groups and privacy advocates around the world are speaking out against RFID. The retail and grocery industry does acknowledge that there are legitimate privacy issues concerning this new technology. Because of that, the Grocery Manufacturers of America has developed privacy guidelines that are designed to protect and educate consumers.

So why are people upset?

• The purchaser of an item will not necessarily be aware of the tag or be able to remove it
• The tag can be read/tracked at a distance without the knowledge of the individual
• The tag remains functional after purchase, which allows the item to be tracked from place to place
• If a tagged item is paid for by a credit card or in conjunction with a shopper card, it would then be possible to tie the unique ID of that item to the identity of the purchaser
• Tags create a globally unique serial number for every individual item, which can link a specific person to a specific can of soda, ballpoint pen, etc. Stepping back from the privacy concern, creating unique serial numbers for every single item is completely unnecessary for most applications.

The grocery business has spent billions of dollars and is investing a lot of time to create consumer trust, so it's in the industry's best interest to act responsibly when implementing any new technology.

Going Forward
RFID technology has a lot of allure to a grocer, as it can help out in many areas of business. But there are also significant drawbacks: in addition to public concern, it is currently costly to buy and set up the equipment needed to use RFID. But as time goes on, the prices of gadgets always come down. Just be sure to stay on top of the RFID news, as this will surely become an even hotter topic.