How it works: An RFID system has two parts: a data-loaded tag (transponder), and a reader (transceiver) that captures the tag's data via radio waves and then sends it to a computer for processing.
Future uses: RFID-tagged houses that do everything from brewing coffee to turning on the shower. Tagging toothbrushes and drug vials could be a godsend to those monitoring elderly parents living alone.
What's hot: Early adopters Wal-Mart and the Pentagon, wanting more inventory control, are asking some vendors to tag shipping pallets.
The next step: Tagging individual items, then tracking them from stockrooms to store shelves to checkout aisles -- even to your debit card. Being able to chart shopping patterns so closely, retailers say, will benefit customers.
Fear factor: Privacy advocates see the ability to follow goods out of stores as a potential abuse. Some fear that anyone with an RFID reader -- a stalker, say -- could track one's movements by reading the label on a T-shirt. RFID fans dismiss such fears, saying tags can be stripped off purchased items or permanently disabled.
So far, privacy concerns -- plus technical and cost hurdles -- have kept retailers (Wal-Mart included) from using RFIDs widely. But that won't last forever.


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