Apart from its expected benefits, the more intensive and extensive use of RFID also raises major issues in the areas of privacy, security, technological reliability, and international compatibility.

One key challenge for decision-makers is to create a common vision and a set of goals on how RFID can keep Europe more innovative and competitive in the world economy. At the same time citizens must have the tools and freedom of choice they need to protect their privacy and security.

At present, technological challenges (lack of global frequency standards, low reading rates, interference with other radio sources, insufficient encryption capabilities…), the cost of implementation and enduser concerns prevent wide take-up of RFID technology.

The European Commission is holding a series of workshops on the subject as part of a public consultation during 2006. The main issues to be addressed are consumer privacy, standards and interoperability, harmonisation of the frequency spectrum, intellectual property rights and future research needs.

This may lead to an EC communication on RFID late 2006 or early 2007.