The European Commission (EC) has launched a public consultation into the use of radio frequency ID (RFID) tags that will seek to establish global standards for the technology and address privacy concerns.

The EC echoed similar concerns in the retail and manufacturing sectors that the current lack of standards and interoperability will stifle RFID development and economic growth. "It is very pressing for standardisation to be achieved – a lack of standards will create huge tariffs and barriers to cost efficiency," said Viviane Reding, commissioner for the EU's information society and media division.

Zygmunt Mierdorf, a member of the management board at retail giant the Metro Group, voiced concerns about the slow speed of RFID adoption in Europe, suggesting that European manufacturers and retailers could miss out if development is forced overseas. "We need a policy environment that encourages all types of companies to invest in RFID technology, but [individuals'] privacy and security has to be 100 percent guaranteed," he said. "If we get this wrong, the consumer sanction for retailers is immediate and silent; they will walk away from us and we will lose the business."

RFID technology is expected to find its way into a vast range of consumer goods, as retailers seek to embed information in everything from food items to pharmaceuticals, and mobile phones to computers, largely to aid inventory control, product tracking and demand-driven manufacturing. But Reding stressed that buyers must know the exact nature of the information contained, and how long it will be retained. "Every individual must be in control of his or her own data. The public doesn't know whether the [RFID information] will follow them into their private life and these sometimes unreasonable fears have to be answered," she added.

The consultation will include an initial workshop, the results of which will be published online for specific business and consumer groups to discuss and make recommendations. Reding will then formulate a concrete proposal to the EC on further action, which could lead to changes in privacy laws. "The consultation has to show if it is necessary to intervene or not. Some governments are thinking about regulation, others are not, but we need agreement across all 25 member states and governments outside the EC as well," she said.