Derren Bibby, at CRM Buyer, has written a very good article on implementing retail RFID in a privacy friendly way. In short, retailers must be transparent about what they are doing and must disable the chips at the door:
INDUSTRY INSIDER: Squaring the Circle with RFID and PrivacyWith RFID, while the customer will benefit from a long list of store efficiency improvements, there will be some who will feel uncomfortable with the prospect of a retailer gaining the ability to peer into their shopping baskets to discover exactly what they are carrying.
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