Walmart introduces the "Smart Tag." Are they protecting their inventory or invading our privacy??

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 causing a ruckus among privacy experts.

According to USA Today and the Wall Street Journal, the roll back giant and one stop conglomerate has created a new “smart tag” that uses a radio frequency to send a signal to everything you buy. Wally world will reportedly begin testing smart tags on men's clothing next month -- including jeans, underwear and socks -- in an attempt to gain more control over its inventory. The removable tags can be read from a distance with scanners to let workers know what sizes are running low on the shelves and tell what items are in stock. They could also ostensibly help combat employee theft.

The tags work by reflecting a radio signal to identify products. This technology is not new, dating back to the 1940s, but is generally used in warehouses, not on individual products.

The individual garments, 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.


One fear is that Wal-Mart would be able to tack movements of customers, who, in some border states like Michigan and Washington, are carrying driver's licenses that contain RFID (Radio Frequency Identification) tags to make it easier for them to cross borders. Even worse, the data it retrieved from your license can give them access to other sensitive personal information (Why didnt anyone tell me this?).

Although Wal-Mart boasts about the efficiency of the new smart tag, Katherine Albrecht, director of a group called Consumers Against Supermarket Privacy Invasion and Numbering says “This is a first piece of a very large and very frightening tracking system”

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.

Wal-Mart officials said they are aware of privacy concerns but insist they are taking a “thoughtful and methodical approach.”

Of course they have to be thoughtful and methodical! They have to downplay the potential of their "smart tags" to reveal information you never wanted revealed in exchange for a deal on 10 pairs of socks! Then again, if they get reckless and lose control of the situation they risk losing their base. Pause. Many of the people who shop at Wal-Mart shop there because they need to save as much money as possible. *This* ladies and gentlemen is a nasty catch-22. As much as they would like to, many people simply cannot afford to boycott wally world. How many other places can you buy frozen pizzas, socks, baby diapers, simply lemonade, electronics and jewelery all while getting your car serviced?  As America's leading retailer Wal-Mart has set the standard for so many shady business practices. If this program proves to be a success, we can say hello to BIG brother, LITTLE brother and the whole BROTHER family because it will be much easier to track our every movement. I dont feel too comfortable purchasing a pair of socks that could give away my whereabouts without my permission. Does anyone else feel like the movie Enemy of the State is more fact than fiction?



Their new slogan should be: Save Money. Let us invade your privacy. Live Better.

What do you think? Are Wal-Mart's new smart tags an invasion of privacy? Weigh in...