As with any technology, it is how it is used that is the most important aspect. (Is it just me, or is it wierd that both a swastika and the number 666 are on this chip?)
In 2005, the actions of a small-town school district in Northern California set off a chain of events that could lead to ground-breaking legislation limiting the use of RFID in California and, if other states pick up the rallying call, across the nation.
Last year the Brittan Elementary School District in Sutter, Calif., required all its students to wear an ID badge implanted with a radio-frequency chip. The badges, which stored a 15-digit identifier for each student, were intended to be used as an attendance aid. Parents, however, were up in arms over the practice, which many said violated their kids’ privacy rights.
As a result, state Sen. Joseph Simitian, a Democrat from Palo Alto, authored a bill introducing security and privacy measures around the use of radio-frequency identification—particularly in government ID documents. The bill is sitting on Governor Arnold Schwarzenegger’s desk; he has until the end of September to either veto it or sign it into law.
There should definitely be legislation regulating how and where RFID is to be used. The potential for abuse by public, private, and government organizations is tremendous.