Brussels, 06/04/2011 (Agence Europe) - The European Commission announced on Wednesday 6 April that it had signed a voluntary agreement with industry, civil society, ENISA (European Network and Information Security Agency) and privacy and data protection watchdogs in Europe to establish guidelines for all companies in Europe to address the data protection implications of smart tags (Radio Frequency Identification Devices - RFID). The use of such smart tags is expanding enormously but there are widespread concerns about their privacy implications as the data contained in these tags can be read without their owners' knowing and confidential information revealed. The agreement signed on Wednesday forms part of the implementation of a Commission recommendation adopted in 2009 which inter alia indicates that when consumers buy products with smart tags, they should be deactivated automatically, immediately and free-of-charge unless the consumer agrees explicitly that this is not to be done. Hailing the industry's excellent collaboration with the players concerned, Digital Strategy Commissioner Neelie Kroes said: “I warmly welcome this milestone agreement to put consumers' privacy at the centre of smart tag technology and to make sure privacy concerns are addressed before products are placed on the market”.
The agreement, “Privacy and Data Protection Impact Assessment (PIA) Framework for RFID Applications”, aims to ensure consumers' privacy before RFID tags are introduced on a massive scale. Around 2.8 billion smart tags are predicted to be sold in 2011, with about one third of these in Europe. But industry estimates that there could be up to 50 billion connected electronic devices by 2020. RFID tags are fitted in increasing numbers of devices, such as mobile phones, computers, fridges, e-books and cars. They bring many potential advantages, for example, improving product reliability, energy efficiency and recycling processes. They also allow users to pay road tolls without having to stop at toll booths and clubbers can even get into their favourite haunts thanks to an electronic tag fitted under the skin than allows them to be identified as regular customers. Against these advantages, RFID tags also raise potential privacy, security and data protection risks. This includes the possibility of a third party accessing personal data without permission. Under the agreement, companies will carry out a comprehensive assessment of privacy risks and take measures to address the risks identified before a new smart tag application is introduced onto the market. The Framework establishes for the first time in Europe a clear methodology to assess and mitigate the privacy risks of smart tags that can be applied by all industry sectors that use smart tags. It will not only give companies legal certainty that the use of their tags is compatible with European privacy legislation but also offer better protection for European citizens and consumers.
The agreement was hailed as “a step in the right direction” by the association ANEC, which represents consumers in issues related to technological norms. AFP reports that the association has, nevertheless, warned that it was counting on the Commission “to act” if the industry did not live up to its commitments. (I.L./transl.rt)