GMA urges no new regulations for RFID

In written testimony to the House Energy and Commerce Committee's Subcommittee on Commerce Trade and Consumer Protection, the association concluded that further regulations concerning Radio frequency identification technology (RFID) and the Electronic Product Code (EPC) are unnecessary.

The GMA is an influential voice in both the food and beverage manufacturing and retail sectors, and this submission illustrates broad industry enthusiasm for the speedy implementation of the technology.

Mary Sophos, GMA's senior vice president and chief government affairs officer, noted that privacy guidelines for the use of these technologies were created by EPCglobal and endorsed by GMA's Board of Directors in January. The guidelines cover four areas: consumer notice, choice and education, along with record use, retention and security.

In addition, Sophos added, manufacturers have invested billions of dollars to create consumer trust in their brands and to maintain that trust, it is in the industry's interest to act responsibly when implementing any new technology.

While summarising the development and potential benefits of RFID and EPC for manufacturers, retailers and consumers, the GMA also pointed out that implementation at the item level is years away. For that reason, "enacting laws and promulgating regulations now would likely do more harm than good, as the benefits of these technologies have not been fully explored,"​ Sophos said.

Under Section 5 of the Federal Trade Commission Act, the FTC has authority to regulate unfair or deceptive practices in and affecting commerce. In recent years, the Commission has used this authority to regulate the manner in which businesses collect and use consumers' personal information on the grounds that a company's failure to abide by its published privacy policies is a deceptive practice under the act.

The EPC is an updated version of the familiar barcode that contains product information coded into a small chip tagged to a container. The chip uses RFID technology to emit radio signals to readers that pick up the unique identifying information contained in the EPC.

Some of the benefits of RFID and EPC identified by the GMA include streamlining the supply chain and inventory control on a global scale, deterring theft and counterfeiting, better product availability and more effective food security.

The Grocery Manufacturers of America (GMA) is the world's largest association of food, beverage and consumer product companies. With US sales of more than $500 billion, GMA members employ more than 2.5 million workers in all 50 states.