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Walmart Begins Rollout of RFID and EPC Tags 462

paroneayea writes "There's a lot about RFID tags in the news today. Wal-Mart is officially beginning to use RFID tags on its merchandise. We've heard about Wal-Mart's plans to introduce RFID tags in the past, but this is the first time that this is actually being put into use. To quote the article: 'Wal-Mart is billing this as a trial, but Simon Langford, Wal-Mart's manager of RFID strategies, told RFID Journal that this is the beginning of the company's planned roll-out of EPC (Electronic Product Code) technology.' Meanwhile, California does something right for a change and introduces a bill that will limit the use of RFID tags in stores and libraries to protect the privacy of customers. IBM, which plans to be a major manufacturer of RFID tags, bashes critics of RFID tags as 'anti-retail.'"
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Walmart Begins Rollout of RFID and EPC Tags

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  • by JawFunk ( 722169 ) on Friday April 30, 2004 @12:35PM (#9019801)
    The tags do not tell the store WHO you are. They can't see you walk out and say, "Joe took a walk-man out of the store" they can only say that one left

    The tags don't give your name away, but your credit card does. Personally, I use cash whenver it's not too incovnenient, but the mjoriy of purchases, especially those over $40, are made with credit cards. The store then has the ability to see what RFID tags you bought (along with the products) and see where you take them.

  • by Anonymous Coward on Friday April 30, 2004 @12:38PM (#9019838)
    that these tags are going on the SHIPPING CONTAINERS! Not actual shelf-product. For example, take a shipment of blank video casettes. They arrive at the store in a box of 12. The box holding the 12 items is what has the RFID, not the tapes themselves. The tapes themselves still use the UPC tags that get scanned by a laser at the cash register.

    Result? Wal-Mart gets improvement in their shipping systems, not the Point-of-sale systems. Interestingly, it provides no improvement in loss control, something some wal-marts have serious problem with.
  • by CrimsonAvenger ( 580665 ) on Friday April 30, 2004 @12:42PM (#9019883)
    own ... oh, wait. The DMCA ... one step closer to 1984 ... well done Bu$h :( Umm, the DMCA was Clinton's. 1998, remember? Bush didn't become President till 2001.
  • by Anonymous Coward on Friday April 30, 2004 @12:43PM (#9019896)
    Wal-Mart is officially beginning to use RFID tags on its merchandise

    No they're not. Read the story. The tags are on pallets and cases that let them track shipments from vendors. The tags are _not_ on the merchandise itself.
  • by Anonymous Coward on Friday April 30, 2004 @12:44PM (#9019905)
    I am not sure the general public has a grasp of just how big Walmart is, and how they wield that power. In February of 2000, Wal-Mart opted to eliminate their meat cutting departments rather than engage in union negotiations. Wal-Mart is the focus of 25 pending lawsuits charging overtime violations. According to the Equal Employment Opportunity Commission, Wal-Mart pays men 34 cents more an hour than women in identical positions. Nationwide, Walmart has 2,864 stores. In 2002, they had $244.5 billion in sales. That's more than 5 times the sales of Target Corporation and combined, exceeds Target, Sears, Kmart, J.C. Penney, Safeway, and Kroger! In the last half of the 1990s, Wal-Mart was responsible for almost 12% of the productivity gains seen in the US economy. 2.3% of the US gross national product belongs to Wal-Mart. In 2002, except for auto parts stores, 7.5 cents of every dollar spent in retail stores in the US was in Wal-Mart. Wal-Mart employs 1.3 million people. In almost half of the states in the US, they are the largest employer. Wal-Mart buys nearly 10% of chinese imported products. Figures taken from Fast Company [fastcompany.com] and The City Pages [citypages.com]
  • Re:RFID tags (Score:4, Informative)

    by Nspace13 ( 654963 ) on Friday April 30, 2004 @12:49PM (#9019965) Homepage
    Umm they aren't even using them on individual products yet, this is just on the pallette of the product in the backroom for inventory purposes. Though i think they plan to use them on individual products in the future.
  • by Mitchua ( 755534 ) on Friday April 30, 2004 @01:05PM (#9020158)
    Try reading that again. The codes will be in the packaging of "cases of one" like printers. Leave the packaging around your home/garbage pail/recycling bin and the tags are now in your home for anyone to scan.
    Quote:
    Some individual products (cases of one, as Wal-Mart refers to them) will have tags. These include two types of HP printers and an HP ScanJet scanner.
    The tags will be in the packaging of those individual products and the packaging will be marked with an EPCglobal symbol, indicating an EPC tag is present. The tags will be disposed of when the packaging is thrown away, and customers will not be tracked after they leave the store. Signs featuring the EPCglobal logo will be placed at the shelf where the HP products are sold to help customers identify tagged items.
  • by MarkedMan ( 523274 ) on Friday April 30, 2004 @01:24PM (#9020392)
    I work in this industry and follow what Wal-Mart is doing very closely. Despite what you might gather from all the posts, Wal-Mart has backed away from primary RFID tags. In english, this means that they are not using RFID tags on the things you purchase. Instead, they are going with secondary and tertiary RFID tagging. In english, they will tag cases of products and pallets of cases. I can't see any privacy concerns in this whatsoever.

    It differs from primary RFID in some fundamentally practical ways too. Everyone in the supply chain has a vested interested in making secondary coding work. If (and this is a far from certain "if" at this point) RFID can reliable track a carton out of a manufacturer, into a truck, into a Wal-Mart distribution center, into another truck, and finally into a local Wal-Mart, it will simplify life. (Before anyone jumps on the fact that the RFID tag makes it into the local Wal-Mart - the tag is attached to the corrugated shipping carton which is discarded and recycled when all the product is removed and placed on the shelves).

    In contrast, there are a number of people who have a vested interest in not having primary RFID work. Aside from people concerned about privacy, there is an incentive to kill tags if they are used in an automatic checkout system. I foresee jammers, zappers, all kinds of shady, quasi-legal devices.
  • Re:Another reason... (Score:3, Informative)

    by geoffspear ( 692508 ) * on Friday April 30, 2004 @01:30PM (#9020472) Homepage
    The US government doesn't regulate who can sell liquor at retail. If you don't like having to go to a state-run store for your liquor, move to a state that will let you buy it anywhere.
  • Re:RFID info (Score:3, Informative)

    by Anonymous Coward on Friday April 30, 2004 @01:35PM (#9020519)
    RFID tags can be read and written to and can have memory capacity from a few K to 8Megs (probably more now). They use the RF energy hitting their antennae to power the device for serial readout. The range can be anwhere from a few feet to 0.5 miles. Alot of trucks and train cars can be scanned up to 0.5 miles as they go by to find out what they are supposed to contain by getting a Bill of Lading list from the memory contained in them. Moreover, the contents could contain the truck and train serial number attached to the contents inside. As for the shopper, if you pay by debit,credit or use the grocery store discount card, they can attach the rfid tags to these numbers. The rfid tags would be a easy way to describe what you bought. The same can be done with the UPC barcode scanners, but they have limited range when stuff is moving through the warehouse. Moreover, the rfid tags can be scanned when going through the detector when leaving the store to set off an alarm or not. Another use of RFID is when you use the toll road and pass through the scanner that detects your id to dock it from your money that you paid the state/gov. This scanner id is associated with your name and license plate so they know who you are. There was talk about a few years back that as you walk around town with your wi-fi or cell phone that they pickup on your id and send you ads about shopping places nearby like food, clothes etc. So yes all these ids in various forms can build a picture about your habits and the things you buy or do. We've had ids for years already, whether it be your drivers license number and the biggest of them all is your social security number!
  • by Merkuri22 ( 708225 ) <merkuri AT gmail DOT com> on Friday April 30, 2004 @01:37PM (#9020531)
    That same signal has the potential to harm electronic media. Make sure you're not carrying any credit cards when you walk through that door or you REALLY won't have to worry about somebody tracking your purchases.
  • by Anonymous Coward on Friday April 30, 2004 @01:48PM (#9020631)
    You could use a microwave pulse generator but it would hardly be handheld. In order to get the power needed to be sure the chips are destroyed, especially the ones with anti-overload protection, you would need a massive amount of power, much more than your microwave. Basically, you take several of the large capacitors used in televisions and make a capacitor bank. You wire the capacitor bank in parallel and charge them up. Then you switch them to series just before discharging the capacitor bank and dumping all that energy into a magnetron (microwave tube). The effect is similar to an extremely short range (a couple of feet at most) EMP. Of course, you would place the items in a shielded metal box before starting the system both to protect other electronic devices and to increase the amount of power absorbed by the RFID chips (inverse square law assumes no reflection). Such a device would be quite large, but would be effective even against the new anti-microwave chips from Alien Technology (a RFID chip maker with chips that can withstand microwaving).
  • by ACNiel ( 604673 ) on Friday April 30, 2004 @02:09PM (#9020874)
    The whole problem with them is they stay on your clothing, your shoes, your car tires, etc.

    If someone could associate your purchase of a jacket to you, maybe because you used a credit card to make the purchase, then that person or organization could track your movements across the world. The technology used to read the tags is relatively passive. You walk through a doorway with a tag on, and it could be scanned.

    This is the fear. It is unclear to me how unique the ID's are, and if they could be used this way.

    And as all RMS followers know, as soon as the information is collected, whether it is illegal or not, it will find a way to get into someones hands that you don't want to know it.
  • I contribute monthly to the EFF, and I've spent the past 5 months working with and understanding RFID technology, right down to getting baked by a reader.

    There are two types of RFID tags: Active and passive. Active tags have a battery and transmit a signal. They cost a few bucks apiece; they're cheap enough for a lot of good uses, such as locating expensive mobile equipment in hospitals ("Oh, the machine that goes, 'Ping!" is on the third floor women's bathroom!"), but far too expensive to track consumer items -- say, a can of soup. They're also pretty large, since they need an antenna and a battery.

    Passive tags are powered by the radio waves themselves. These are the ones that will eventually be cheap enough that they can be put on individual cans of soup, maybe in two to three years.

    In order for a passive tag to get enough power to transmit its unique identification number, a few things need to happen. The tag itself -- although it's a very small chip -- needs a rather large antenna to pick up enough energy to get power. The smallest ones I've seen are about 3" long. The RFID reader needs to have a VERY powerful microwave transmitter and antenna. The devices I worked with required me to be at least nine inches away from them most of the time to keep from getting cooked. Even with this powerful reader and large antenna, I've had to hold tags about a foot away from the antenna for a good second or three to see them show up.

    Now what are we afraid of regarding RFID? Well, we're afraid that beyond the point of sale, someone will put a reader on us and know all about us or be able to track our movements, because we'll be covered in these RFID tags with unique identifiers.

    Now we've seen technology advance, but Physics is Physics. A tag with an antenna no smaller than 3" in size has to be held within a foot of a reader powerful enough to warm your skin for a second to transmint 30-odd bits of data. This is not going to change unless the laws of Physics change first -- there is no technology to change this.

    You're going to be able to find RFID tags in your stuff, because the large antenna will give itself away. And you're not going to patiently stand and pose next to a high-powered reader while it tries to sort out all of the tags you're wearing ("Excuse me, can you kneel down so I can get the one on your eyeglasses? Now lift your feet, I can't see your shoes..."), unless you're cold and want to warm up really fast.

    What I've laid out here is not common knowledge. That's a big part of the reason I'm writing this now: I know that Slashdot readers are concerned about the issue and are capable of understanding the science behind the issue. Once you understand the issue, you realize that the government isn't going to be using this to track your movements -- from a foot away. People are not going to be able to surreptitiously scan you to learn all about you -- while asking you to stop and pose for the antenna. You're not going to be covered in three-inch-long RFID tag antennas without your knowledge.

    I believe that you should be taking neither my word for it nor CASPIAN's. You should do your own research and learn. Don't co-opt someone else's point of view or trust that they've done their due diligence just because you share the same political point of view as he or she does. You may be pro-EFF, just like me -- that doesn't mean you should trust what I've said. You may have beliefs similar to Albrecht's -- but you shouldn't trust that she's done her homework, either!

    In practice, you, me, and everyone else does trust the leaders of organizations we agree with to have done their due diligence and to know more than we do about issues. And we do co-opt their points of view. That is why IBM is speaking out: Because it's clear that although Albrecht doesn't understand RFID technology, people are listening to her.

    I'm concerned enough about the preservation of civil liberties to donate regularly to the EFF. After working with RFID technology for the past several months and seeing its inherent limitations, I feel that we have little, if anything, to fear from this technology. But don't take my word for it because I claim this is true; do your own research.
  • "Now, how could such limited devices be of any use in retail?"

    The main benefit of the RFID tag over the UPC label is that you don't have to have the tag aligned a certain way and visible to activate it.

    In the supply chain leading to the store, lots of products are buried in a pallet, and organizations need to know what's in there (and how many) to track their shipments efficiently. With RFID tags, the pallet need not be opened to know exactly what's in it. In the warehouse, workers can remain a safe distance away from readers on conveyers, forklifts and the like.

    Wal-Mart and the US military have immense supply-chain networks. If they save a fraction of a penny per item in their supply chains through better tracking, they can save hundreds of millions of dollars per year. That's why Wal-Mart and the US military are the first two organizations to sponsor supply-chain RFID pilots.

    The other uses you mention are still possible, but require some good engineering work. For example, at the checkout counter, much lower-powered readers can be used, because the checker can put the tag on the reader's antenna at point-blank range, and it's not a problem to wait a second for the tag to slowly charge up and send its data.

    Theft prevention would require the cooperation of security cameras. The idea is that store shelves would have readers and antennas, so that when someone would remove an item, there's a record of it leaving a shelf. Then, you would be able to go to the videotape and view the thief taking the item as it happens. So you don't see the item leave the store, but you can see it leave the shelf. Shelf-mounted readers can also help floor managers know when certain items are low on stock, and that sort of thing. Again, since the items sit on the shelf for long periods of time, and since we're talking about a short distance, this sort of thing can happen -- but it's going to take some good engineering work to get solid coverage of large shelves without nuking customers.

    I believe the benefits of RFID inside the store have been oversold. I think that's the main reason why people are worried about their privacy now; RFID sounds a lot more powerful than it really is. The real applications will be in warehouses; Wal-Mart isn't going to get a lot of benefit from RFID in their stores, but they're going to save billions in the long run by making their supply chain to the stores more efficient.

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