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Ten million motorists nationwide now have a small E-ZPass tag attached to their windshield. It allows them to coast through toll booths, paying electronically. The same technology is used in the Speedpass keychain fob that more than 6 million people now use through Exxon and Mobil.
The technology, known as Radio Frequency Identification (RFID), will one day make it possible to track a single lipstick tube on a drugstore shelf--how it got there and who bought it. Retailers see RFID as a way to cut down drastically on pilfering and misplaced merchandise. It could also provide valuable data about people's buying habits.
That has raised concerns that RFID could be used to track individual consumers and their activities--information that retailers could share without your knowledge.
ExxonMobil is marketing its Speedpass system to other retailers. McDonald's is testing it at more than 400 stores in Chicago and northern Indiana. Stop & Shop supermarkets is testing it in 15 stores in Boston. ExxonMobil is providing information about customers to McDonald's and Stop & Shop. McDonald's, in turn, says it can use the information to offer special promotions. Stop & Shop didn't respond to our inquiries.
Wal-Mart has told its major suppliers to use RFID on all shipping containers and pallets by ...