The use of such smart tags is expanding enormously -around 1 billion in Europe in 2011- but there are widespread concerns about their privacy implications. This is the reason why the Commission has signed a voluntary agreement the stakeholders involved on its use to establish guidelines for all companies in Europe to address the data protection implications of smart tags.

RFID tags (Radio Frequency Identification Devices – RFID) in devices such as mobile phones, computers, fridges, e-books and cars bring many potential advantages for businesses, public services and consumer products. Examples include improving product reliability, energy efficiency and recycling processes. The most known RFID tag application is paying road tolls without having to stop at toll booths. In addition, it contributes to avoid the environmental footprint of products and services.

Nonetheless, RFID tags also raise potential privacy, security and data protection risks. This includes the possibility of a third party accessing your personal data -e.g. concerning your location- without your permission. The European Parliament called last June, a further monitoring of users' rights regarding the use of this technology.

The agreement signed today, "Privacy and Data Protection Impact Assessment (PIA) Framework for RFID Applications", aims to ensure consumers' privacy before RFID tags are introduced on a massive scale. The PIA Framework establishes for the first time in Europe a clear methodology to assess and mitigate the privacy risks of smart tags that can be applied by all industry sectors that use smart tags such as transport, logistics, the retail trade, ticketing, security and health care.

In concrete, the PIA framework will not only give companies legal certainty that the use of their tags is compatible with European privacy legislation but also offer better protection for European citizens and consumers.