DMReview.com, July 18, 2007

Imposing new regulations on RFID technology is premature, according to "Playing Tag: An RFID Primer," a new report released by the Pacific Research Institute (PRI), a California-based free-market think tank.

"A relatively new technology like RFID tends to spark fear in people, but fear should not drive government regulation," said K. Lloyd Billingsley, editorial director at PRI and author of Playing Tag. "Lawmakers should weigh the pros and cons of this technology, before imposing a regulatory regime that would inhibit the positive benefits of RFID."

Radio frequency identification tags track inventory for retail businesses and the military. Future benefits of RFID extend into medicine, agriculture and security. An RFID tag can act as the modern equivalent of a medical bracelet for patients, monitor the body temperature of animals to alert farmers of disease or detect fraudulent passports.

Privacy activists and politicians concerned about potential abuse are developing guidelines and legislation for RFID. In 2006 State Senator Joe Simitian (D-CA) authored the Identity Information Protection Act, hailed by some as model legislation for all states. Governor Schwarzenegger vetoed the measure, explaining that the bill's provisions were "overbroad and may unduly burden the numerous beneficial new applications of the technology."

Senator Simitian is unveiling a new RFID bill for 2007. Additional legislation is pending in a number of states including Wisconsin, Utah, Washington, New York, and Missouri.

"Governor Schwarzenegger's veto is a model for all states," Billingsley said. "Legislators seeking to ban or heavily regulate RFID may inhibit the very technology that could help streamline government operations."

This piece has been brought to you by the DM Review Editorial staff.