Radio ID: Asset or snoop?

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Nearly unknown a decade ago, a device the size of a pencil tip is beginning to infiltrate every corner and pocket of American life.

This recent technology -- called RFID for "radio frequency identification" -- is making everything from warehouse inventory to lost-luggage tracking to library checkouts easier, faster and much more informed.

Some examples of RFID uses that have proliferated in just the past several years:

• Electronic key-size purchase tags in Arizona that are replacing conventional credit cards.

• ID tags for Texas schoolchildren that allow local law enforcement officers to monitor their movements.

• A proposal to examine the possible use of E-ZPass- type trackers in California autos to enforce a statewide mileage tax.

• Medicine containers electronically fitted nationwide to alert to fraud, counterfeiting and even mistakes by hospital staff.

• More than 100 suppliers to Wal-Mart and Sam's Club will use RFID technology beginning Saturday to track shipments to stores in Texas and Oklahoma.

At the same time, the rush to harness the technology is raising a host of regulatory and other concerns, including the invasion of privacy, personal freedom and civil rights. Those issues, in turn, are generating concern by lawmakers about how access to data collected by such methods should be limited and protected.

Although much legislation has accompanied the new technology in some arenas -- most notably the health care and financial areas -- many experts say the United States lags behind other countries overall and has several key gaps that could be exploited as new applications reach the marketplace.