RFID technology raises privacy concerns when its use enables parties to obtain personally identifiable information, including location information, about particular individuals that those parties otherwise would be unable or unauthorized to obtain. This information may be a person's location; it may be that the person has a certain product in his or her possession; it may be that the person has used a particular service. Security concerns arise if unauthorized parties are able to obtain such information either from interception of the radio communications between tags and readers, through unauthorized reading of the tags, or via unauthorized access to the network or the database.
Detailed analysis of privacy and security issues in the context of these new technologies is clearly called for. Three general principles emerge from this analysis that can be applied to help address concerns about privacy in existing and new applications of RFID: the principle of technology neutrality; the principle of privacy and security as fundamental design requirements; and the principle of transparency.
Technology Neutrality: RFID technology in and of itself does not impose threats to privacy. Rather privacy breaches occur when RFID, like any technology, is deployed in a way that is not consistent with responsible information management practices that foster sound privacy protection.
Privacy and Security as Primary Design Requirements: Users of RFID technology should address the privacy and security issues as part of its initial design. Rather than retrofitting RFID systems to respond to privacy and security issues, it is much preferable that privacy and security should be designed in from the beginning.
Consumer Transparency: There should be no secret RFID tags or readers. Use of RFID technology should be as transparent as possible, and consumers should know about the implementation and use of any RFID technology (including tags, readers and storage of PII) as they engage in any transaction that utilizes an RFID system. At the same time, it is important to recognize that notice alone does not mitigate all concerns about privacy. Notice alone does not, for example, justify any inappropriate data collection or sharing, and/or the failure to deploy appropriate security measures. Notice must be supplemented by thoughtful, robust implementation of responsible information practices.