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US: Gillette To Test RFID Technology In Wal-Mart Stores

Boston Business Journal
April 30th, 2004

Gillette Co. achieved a technology milestone as Wal-Mart Stores Inc. began testing electronic product codes in Dallas that will lead to the use of radio frequency identification (RFID) tags -- an electronic tracking system that has prompted privacy concerns in Massachusetts.

Gillette and seven other companies are the first of Wal-Mart's suppliers to test the use of the system in a real store. Wal-Mart is requiring its top 100 suppliers to be RFID-ready by January. So far, nearly half of those suppliers have said they will be able to meet the deadline.

RFID technology enables suppliers and purchasers to track the location and status of a specific product.

"It is imperative that we have the merchandise the customer wants to buy when they want to buy it," said Linda Dillman, chief information officer of Wal-Mart, in a statement. "We believe RFID technology is going to help us do that more often and more efficiently."

In Massachusetts, state Sen. Jarrett Barrios, D-Cambridge, has filed legislation that would strictly limit the use of RFID tags. Barrios' bill calls for having the devices disabled at the point of sale and requiring businesses to provide consumers with a written consent form when the RFID is not removed.

The other suppliers participating in the Dallas pilot include Hewlett-Packard Co., Johnson & Johnson Inc., Kimberly-Clark Inc., Kraft Foods Inc., Nestle Purina PetCare Co., Procter & Gamble Co. and Unilever Corp.





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