Aus privacy groups demand opt-in for new ID tags - News - Business

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This story was printed from ZDNet Australia.
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Aus privacy groups demand opt-in for new ID tags

By James Pearce, ZDNet Australia
May 08, 2003
URL: http://www.zdnet.com.au/news/business/soa/Aus-privacy-groups-demand-opt-in-for-new-ID-tags/0,139023166,120274325,00.htm

Australian privacy advocates have cautiously welcomed news from the United States that some radio frequency identification tags will be fitted with a "kill switch" to prevent them transmitting information if the owner desires it.

NSW Council of Civil Liberties president Cameron Murphy described the introduction of the kill switch as "a good step forward", but said the radio frequency identification (RFID) tags should be switched off automatically as a customer purchases the product.

"It shouldn't be up to the consumer to opt-out, they should only be gathering private information with the permission of the consumer," Murphy told ZDNet Australia . "It should be set as default to off, and [companies] should be seeking informed consent to turn it on. It requires an awareness campaign [to inform consumers] of positive and negative consequences."

The Federal Privacy Commissioner, Malcolm Crompton, echoed Murphy's comments, saying the news is a "good privacy development for the technology and consumers", but warning it needs to be an opt-in process.

"In general, shoppers should be told that the items they have purchased have RFID tags in them," said Crompton. "The tags should be automatically switched off at the time that a person buys an item, unless the customer wants the tag to continue to operate. Some people like to know that their favourite store remembers them and is willing to improve their shopping experience."

"However, other customers don't want that level of connection with a store, they simply want to be able to buy items anonymously. Where retailers want to offer this option to customers, that's what it should be, an offer, as many people will not want this amount of personal information to be retained by the organisation," said Crompton.

Murphy said the choice should be left with consumers. "What's important is that consumers are aware that products contain these devices and that consumers are able to maintain their privacy after they purchase goods," he said.

Crompton explained the benefits to retailers of behaving in an ethical manner. "If businesses get this right they will build trust with their customers and grow their business," he said.