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American Eagle clothing chain denies using spychips
August 9— On the eve of a major RFID apparel and footwear conference, privacy activists are asking questions about an industry video depicting the use of Radio Frequency Identification (RFID) at an American Eagle Outfitters store. American Eagle has at least eight retail stores in the Metro Boston area.
Spychips, or RFID microchips, contain unique identification numbers or data that can be read silently and invisibly by radio waves.
The animated video, created by technology integrator CompEx Inc., depicts how a retailer could embed the controversial technology into clothing and credit cards to secretly identify and track consumers—even deliver targeted marketing messages.
Although the video was created in 2002, its disclosure yesterday had an immediate impact on senior management at American Eagle Outfitters.
McIntyre says that within minutes of sending the video clip to an executive at American Eagle, she received a call from Ed Nebb, senior director of investor relations and crisis communications at Berns Communications Group. He issued the following statement:
"American Eagle currently does not use any RFID systems, either in supply chain management, consumer credit card or loyalty programs, or anywhere else within our operations,” Nebb said. “We highly value and respect our customers' privacy. The fact that a vendor may have offered a system demonstration should not be interpreted as an intention on our part to adopt such a system in the future."
The video shows a consumer walking into an American Eagle Outfitters store, being remotely identified through the American Eagle Outfitters credit card in his pocket, and purchasing items with RFID tags hidden in the store's branded clothing. The graphic footage concludes with a full-facial biometric scan conducted through a pinhole camera at checkout.
The animated flash clip is posted on the authors' website at: http://www.spychips.com/RFIDclothingstoredemo.html
CompEx Inc. President Aram Kovach, who developed the video, told McIntyre that American Eagle Outfitters had requested the RFID demonstration. "They asked us to come out," he said, explaining that the executives later traveled to Kovach's office in Ohio to see a working prototype.
The RFID tracking capability depicted in the video is feasible. "It worked," Kovach said. "All of these things can be done." But he noted that the cost of the tags was a big barrier to adoption.
McIntyre and Albrecht worry that companies deterred by cost issues may be reviving such plans now that the price of tags has dropped below eight cents.
They point to the RFID Apparel and Footwear Conference to be held at New York's Fashion Institute of Technology next week as a reason for concern. The event, co-sponsored by RFID Journal and the American Apparel and Footwear Association, promises "to show you how RFID can uniquely benefit the apparel and footwear industry." However, unlike past RFID events, where members of the press were welcomed, the promotional literature for the conference states:
"The entire conference is off limits to the press, so you can be sure you'll get candid insider insight that you can't hear anywhere else."
"It's clear that implementing RFID in apparel and footwear is being discussed behind closed doors," said Albrecht. "Our concern is that the companies working to integrate RFID into clothing operations are keeping their plans from the public. A case in point is Levi Strauss, which is selling clothes with RFID hang tags attached, but refusing to disclose the test location."
"What is it they're discussing that they don't want the press to know?" Albrecht asks. "The press restriction is obviously not designed to keep proprietary information from industry competitors, since any apparel or footwear company can attend the event at a discounted rate. Clearly, excluding the press is an attempt to prevent the public from learning about the industry's plans to use RFID tracking devices in clothing."
Albrecht and McIntyre have posted a promotional email for the conference that specifies the press restriction at: http://www.spychips.com/RFIDApparelandFootwearConference.html
CASPIAN: Consumers Against Supermarket Privacy Invasion and Numbering
www.nocards.org www.spychips.com
Liz McIntyre and Katherine Albrecht are co-authors of "Spychips: How Major Corporations and Government Plan to Track Your Every Move with RFID."