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RFID providers and users can influence public policies that impact the RFID industry.


By Doug Farry

Oct. 1, 2006—By the time you read this, California Gov. Arnold Schwarzenegger will have signed into law the Identity Information Protection Act of 2006 (SB-768), the most sweeping legislation to date regulating RFID's use. Yet only a handful of technology companies were actively engaged with policy makers in Sacramento.

With one step, an entire market could be closed for RFID products that don't meet the new legal requirements. Other politicians, both state and federal, will be observing the reaction to the legislation, to decide whether to imitate or repudiate it. The California standards could be adopted by the public and private sectors, to avoid deploying RFID systems that are "less secure." The legislation also tells the general public that RFID is too risky—a growing perception already shaping the overall market for RFID products.


The jury is still out on whether the authors of this legislation will be hailed as champions of privacy protection or lampooned as shortsighted Luddites blocking valuable innovations. But one thing is certain: Governments are not going to leave the RFID industry alone. There are things RFID vendors and users can do to help shape responsible public policy that supports their business.

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