To require that commodities containing radio frequency identification tags bear labels stating that fact, to protect consumer privacy, and for other purposes.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SEC. 1. SHORT TITLE.

This Act may be cited as the 'RFID Right to Know Act of 2003'.

SEC. 2. AMENDMENTS TO THE FAIR PACKAGING AND LABELING PROGRAM.

15 U.S.C. 1453 is amended--

(1) by inserting the following under subsection (a) paragraph (6):

'(7) A consumer commodity or package that contains or bears a radio frequency identification tag shall bear a label as provided in paragraph (9) of this subsection.

'(8) For purposes of paragraph (7) of this subsection the term "radio frequency identification" or "RFID" means technologies that use radio waves to automatically identify individual items; and the term "tag" means a microchip that is attached to an antenna and is able to transmit identification information.

'(9) A label required by paragraph (7) of this subsection shall:

'(A)	state, at a minimum, that the consumer commodity or package contains or bears a radio frequency identification tag, and that the tag can transmit unique identification information to an independent reader both before and after purchase; and
'(B)	be in a conspicuous type-size and location and in print that contrasts with the background against which it appears.'.

SEC. 3. AMENDMENTS TO THE FEDERAL FOOD, DRUG, AND COSMETIC ACT RELATING TO MISBRANDING.

21 U.S.C. 321 is amended--

(1) by inserting the following under subsection (mm):

'(nn)

(1) The term "radio frequency identification" or "RFID" means technologies that use radio waves to automatically identify individual items. '(2) The term "tag" means a microchip that is attached to an antenna and can transmit identification information.'.

21 U.S.C. 343 is amended--

(1) by inserting the following under subsection (v):

'(w) Radio Frequency Identification (RFID) Tags

'If the food or package contains an RFID tag, unless it bears a label

'(1) stating, at a minimum, that the consumer commodity or package contains or bears a radio frequency identification tag, and that the tag can transmit unique identification information to an independent reader both before and after purchase; and

'(2) in a conspicuous type-size and prominent location and in print that contrasts with the background against which it appears.'.

21 U.S.C. 352 is amended--

(1) by inserting the following under subsection (t):

'(u) Radio Frequency Identification (RFID) Tags

'If the drug or device or package contains an RFID tag unless it bears a label

'(1) stating, at a minimum, that the consumer commodity or package contains or bears a radio frequency identification tag, and that the tag can transmit unique identification information to an independent reader both before and after purchase; and

'(2) in a conspicuous type-size and prominent location and in print that contrasts with the background against which it appears.'.

21 U.S.C. 362 is amended--

(1) by inserting the following under subsection (f):

'(g) Radio Frequency Identification (RFID) Tags

'If the cosmetic or package contains an RFID tag unless it bears a label

'(1) stating, at a minimum, that the consumer commodity or package contains or bears a radio frequency identification tag, and that the tag can transmit unique identification information to an independent reader both before and after purchase; and

'(2) in a conspicuous type-size and prominent location and in print that contrasts with the background against which it appears.'.

SEC. 4. AMENDMENTS TO THE FEDERAL ALCOHOL ADMINISTRATION ACT.

27 U.S.C. Ch.8, Subch. II is amended--

(1) by inserting the following under section 215:

'§ 215a. Labeling requirement; radio frequency identification tags

'(a) Statement required on container

'A person shall not manufacture, import, or bottle for sale or distribution in the United States any alcoholic beverage unless its container bears a label:

'(1) stating, at a minimum, that container contains or bears a radio frequency identification tag, and that the tag can transmit unique identification information to an independent reader both before and after purchase; and

'(2) in a conspicuous type-size and prominent location and in print that contrasts with the background against which it appears.

'(b) The Secretary shall prescribe appropriate penalties for violations of this section.'.

SEC. 5. AMENDMENTS TO TITLE 15, CHAPTER 36--CIGARETTE LABELING AND ADVERTISING.

15 U.S.C. Ch.36 is amended--

(1) by inserting the following under section 1333:

'§ 1333a. Labeling requirement; radio frequency identification tags

'(a) Statement required on package

'A person shall not manufacture, import, or package for sale or distribution in the United States any cigarettes unless its package bears a label:

'(1) stating, at a minimum, that the package contains or bears a radio frequency identification tag, and that the tag can transmit unique identification information to an independent reader both before and after purchase; and

'(2) in a conspicuous type-size and prominent location and in print that contrasts with the background against which it appears.'.

'(b) The Secretary shall prescribe appropriate penalties for violations of this section.'.

SEC. 6. AMENDMENTS TO TITLE 15, CH. 94--PRIVACY.

15 U.S.C. Ch.94 is amended--

(1) by inserting the following under Subchapter II:

'SUBCHAPTER III--AGGREGATION OF NONPUBLIC PERSONAL INFORMATION AND RADIO FREQUENCY TAG IDENTIFICATION INFORMATION

'§ 6831. Privacy protection for consumers

'(a)

(1) A business shall not combine or link an individual's nonpublic personal information with RFID tag identification information, beyond what is required to manage inventory. '(2) A business shall not, directly or through an affiliate, disclose to a nonaffiliated third party an individual's nonpublic personal information in association with RFID tag identification information. '(3) A business shall not, directly or through an affiliate or nonaffiliated third party, use RFID tag identification information to identify an individual.

'(b) Safeguards

'The Federal Trade Commission shall establish appropriate standards for the businesses described in subsection (a) of this section--

'(1) to insure the integrity and confidentiality of an individual's records and information;

'(2) to insure that RFID tag records do not identify individuals;

'(3) to protect against anticipated threats or hazards to the security of an individual's records and information; and

'(4) to protect an individual against substantial harm or inconvenience, which may result from unauthorized access to or use of an individual's records and information.'.

'§ 6832. Consumer and Business Education

'(a) The Federal Trade Commission shall publish and disseminate documents with the purpose of educating the general public about RFID technology. The documents, at a minimum, shall describe RFID technology and how companies, marketers and government agencies can use RFID technology to collect an individual's nonpublic personal information.

'(b) The Federal Trade Commission shall publish and disseminate documents with the purpose of educating businesses about RFID technology and the importance of protecting an individual's privacy. The documents, at a minimum, shall describe RFID technology, advocate privacy protection, and explain how businesses must conform their actions to comply with the provisions of this Act.'.

'§ 6833. Relation to State laws

'A State may afford an individual greater protection than the protection provided under this subchapter.'.

'§ 6834. Rulemaking

'The Federal Trade Commission shall prescribe regulations necessary to carry out and enforce the mandate of this subchapter.'.

'§ 6835. Definitions

'(a) The term "radio frequency identification" or "RFID" means technologies that use radio waves to automatically identify individual items.

'(b) The term "tag" means a microchip that is attached to an antenna and can transmit identification information.

'(c) The term "business" means a corporation, partnership or other entity that collects or aggregates an individual's nonpublic personal information.

'(d) The term "nonpublic personal information" means information that a business can use to identify an individual. Such information includes, at a minimum, name, address, social security number, and financial data.'.

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