Tesco develop RFID - The "Bad" News

As discussed in the previous article, RFID is a major technology breakthrough for retailers such as Tesco’s which is seen as a major tool for the delivery of the companies underlying strategy.
Tesco’s Chairman Sir Terry Leahy placed this mission statement in the centre of one of the company’s annual reports: “Continually increasing value for customers to earn their lifetime loyalty.” With this in mind RFID will certainly deliver against this statement.
However, the question here is what are the negative aspects of this technology and its implementation? Will customers buy into this for the future or will they resist?

Spy technology?
A significant campaign has been headed by CASPIAN (Consumers Against Supermarket Privacy Invasion and Numbering), in which the “Spy” potential of this technology is explored.

In essence the argument is that if items are tagged, the item can be tracked after purchase and can be used to “spy” on the consumer.

Worse still is that with individual numbering of RFID tags, is that individual consumers can be tracked and profiled without the persons consent or knowledge.

The possibility beyond this is very Hollywood like, in that through personal profiling that an RFID chip inside a persons clothing could be read by appropriately set up advertising board, to flash up adverts especially tailored for that individual. Further the individual can effectively be tracked everywhere they go.

Sounds far fetched but this is entirely possible. Thus the personal intrusion and infringement on privacy is a significant risk associated with this technology.

In fact Benetton has allegedly pulled its RFID programme that was in development, due to immense public pressure. So the likelihood of RFID chips and several of them for that matter, being carried around by an individual is actually high, should companies continue to develop the technology,

Other issues…
There is a lack of cryptography, which means that the technology is open to significant abuse, such as changing the prices for a product, by altering the RFID chip.

There are other even more frightening possibilities… How about the “smart mugger”, who will know what items you have on you and whether you are worth mugging or not! Plus Euros are (it has been alleged) fitted with RFID tags, so a mugger will know how much cash you are carrying!

How about you walk into a car dealership, and the various RFID chip on you give away your name, address, financial history etc, the garage will immediately know how to treat you, e.g. the guy/gal can afford to be here or no they can’t!!

Also corporate espionage is a possibility, with companies tracking other company’s activities and transactions. The implications are huge!

Solutions?
The most obvious is to effectively “kill” the tag after the goods have been purchased, thus rendering the chip dead. There is a distinct possibility but to ensure the privacy issue is overcome, the technology would need to be fool proof.

There are other possibilities, such as “blocker tags” which can provide privacy from intrusion outside of designated areas, for example.

However, the possibilities associated with RFID tagged products are enormous. For example stolen goods can be tracked. There are even further possibilities for Tesco’s in that kitchens fitted with RFID technology and “smart shelving” can actually generate shopping lists, which could then communicate with the local store, and arrange delivery. Or if you “lost” an item in the house you could locate it.

So it is highly likely that when the full potential of these chips is fully explored that people may well by pass the privacy infringement associated, as long as there are tangible (or believable) benefits.

At the end of the day the UK has the highest concentration of CCTV camera in the world, and accepts this as it is perceived to be for the public good and safety, so will they be as forgiving of spy chip technology…. time will tell.

Conclusion
At the end of the day there has been a lot of exaggerated publicity and consequences of this technology. However, it must also be appreciated, that is used correctly the benefits could be vast.

For Tesco’s in particular the technology is a threat to their very strong relationship with its customers, and they will need to be seen to be involved and driving the process to alleviate public concern on these chips. Otherwise they may not see the technology implemented as quickly as it otherwise may have been.