Wal-Mart plan to use smart tags raises privacy concerns

Wal-Mart Stores (WMT) is putting electronic identification tags on men's clothing like jeans starting Aug. 1 as the world's largest retailer tries to gain more control of its inventory. But the move is raising eyebrows among privacy experts. The individual garments, which also includes underwear and socks, will have removable smart tags that can be read from a distance by Wal-Mart workers with scanners. In seconds, the worker will be able to know what sizes are missing and will also be able tell what it has on hand in the stock room. Such instant knowledge will allow store clerks to have the right sizes on hand when shoppers need them. Wal-Mart's goal is to eventually expand the tags to other types of merchandise but company officials say it's too early to give estimates on how long that will take. "This is a first piece of a very large and very frightening tracking system," said Katherine Albrecht, director of a group called Consumers Against Supermarket Privacy Invasion and Numbering. Albrecht worries that Wal-Mart and others would be able to track movements of customers who in some border states like Michigan and Washington are carrying new driver's licenses that contain RFID tags to make it easier for them to cross borders. Albrecht fears that retailers could scan data from such licenses and their purchases and combine that data with other personal information. She also says that even though the smart tags can be removed from clothing, they can't be turned off and can be tracked even after you throw them in the garbage, for example...more