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Best Buy adopts RFID tracking technology

MINNEAPOLIS, Sept. 8 (UPI) -- A major U.S. retailer, Best Buy, is moving to adopt potentially controversial Radio Frequency Identification technology.

Best Buy is requiring all its major suppliers to use RFID tags on all pallets and product cases by May 2007.

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The company said it also will test the technology at several stores and distribution centers.

RFID tags are expected to replace the bar codes now used to track inventory and speed checkout lines. Each RFID tag has a microchip and an antenna that responds to a signal with information. The response can be a serial number that, when combined with a database, can identify a specific item and where it has been. In time it will be possible to automatically query many tags at once, making gathering data much quicker.

Initial applications are largely for tracking shipments and keeping shelves stocked. Once cheap enough, however, the technology could be used on individual items like a box of cereal.

Privacy advocates are concerned the potentially invisible tags eventually will enable tracking of everything an individual buys. They also are worried the tags could be used to track peoples' movements without their knowledge.

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