Radio Frequency IDentification (RFID) is a technology that allows automatic identification of objects, animals or people by incorporating a small electronic chip on its "host". Data is stored on this chip and can then be "read" by wireless devices, called RFID readers. The concept is similar to traditional barcodes. A barcode represents information in a condensed format (usually lines) that takes little space and can be read by a machine.
Compared to barcodes, RFID tags are "smarter": the information on the micro-chip can be read automatically, at a distance, by another wireless machine. This means RFID is easier to use and more efficient than barcodes. RFID tags allow for the storage and transmission of a higher amount of data meaning supply chains can be managed in a much more efficient way. This technology will enable retailers to offer significant benefits for consumers - fewer stock shortages, faster shopping, greater security concerning the origin and authenticity of products, easier returns and warranties.
There has been much discussion with consumer groups and others over the past 2-3 years about the uses of RFID, and the need to balance the benefits it can bring with the need to ensure the highest standards of privacy and data protection. ERRT is working with European authorities and other stakeholders in order to ensure that future legislation will ensure a high level of protection for consumers and, at the same time, will allow the development and the application of the technology in the supply chain, in order to provide consumers with a better service.
Press releases:
Retailers welcome RFID guidelines and call on Member States to adopt the same approach (12 May 2009)