Thursday, April 5, 2012

HW 8

I read the article called "Wal-Mart to Put Radio Tags on Clothes" by Miguel Bustillo published on 7/23/10 on Business Exchange.  Bustillo talks about how Wal-Mart plans to put electronic ID tags on individual pairs of jeans and underwear to track them.  The “smart tags” would be placed on individual garments that could be read by a hand-held scanner.  Wal-Mart claims that this will help ensure that shelves will be able to be stocked because they would know what items were missing and inventory would be tightly watched.  Raul Vazquez, the executive in charge of Wal-Mart stores in the western U.S. said, “This ability to wave the wand and have a sense of all the products that are on the floor or in the back room in seconds is something that we feel can really transform our business.”  According to executives, the start of a “next-generation Wal-Mart” has privacy advocates raising questions.  The tags are able to be removed from clothing and packages, but they cannot be turned off and they are trackable.  According to Bustillo, “some privacy advocates hypothesize that unscrupulous marketers or criminals will be able to drive by consumers’ homes and scan their garbage to discover what they have recently bought.”  Another thing that also worries people about this is that retailers would be able to scan customers who carry new types of personal ID cards as they walk into a store without them even knowing.  This would allow retailers to know people’s identities when they come into a store which I believe is not right.  Everyone should have their own privacy and it is not fair if someone can scan your personal belongings without you even knowing.  Wal-Mart posted signs telling customers about the tags and they also demanded that suppliers put the tags on removable labels or packaging instead of in clothes to minimize the fear that people would be tracked.  Wal-Mart also believes that having these tags will cut down employee theft because it will be easier to see what is missing.  Other U.S. retailers also started experimenting with smart ID tags on clothing to make sure that shelves are stocked with the colors and sizes that customers want.  Proponents think that RFID tags could get rid of checkout lines.

2 comments:

  1. Moe, this goes back to what we talked about in our debate in class the other day. These RFID cards are going to make business in general easier but they do pose as a security risk to the customer. From the business side I can see why it is more convenient to be able to see what is being taken off the shelves so that they can re-stock the items as needed. Also the companies said that it could cut back on employee stealing which I also believe is a great benefit because companies will be able to save money in the loss prevention department which in turn will lead them to not having to raise prices. As far as security goes I understand why the customer would think that this is a little bit risky or an invasion of privacy. Hypothetically speaking people believe that someone could drive by your trash and see what you have recently purchased by the RFID's in your trash which I also do not believe is right.

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  2. Moe, I also agree with with Alyssa said and how it goes back to your debate that you guys had in class the other day. RFID tags could make it alot easier for general business transactions but it does however risk the security of the consumer. I believe that it would be alot easier for the business side of this because it would make it easier for the business to do things such as dealing with the inventory of your companies products. But to think that RFID tags could possibly be inbeded in the things that you wear or use is a little wierd because people would be able to tell what you were buying because of the RFID tags. I just dont think that it is a great idea. It is good but its not something I would be a fan of.

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