SUMMARY OF THE BILL

AN ACT

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

SEC. 1. SHORT TITLE.

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

     This section amends the Fair Packaging and Labeling Program by inserting language under subsection (a) of paragraph (6). This section requires that a consumer commodity or package that contains or bears a radio frequency identification tag shall bear a label as provided in the paragraph below.

     It also defines the term "radio frequency identification" or "RFID" to mean technologies that use radio waves to automatically identify individual items. It defines the term "tag" to mean a microchip that is attached to an antenna and is able to transmit identification information.

     Finally it describes that the label should 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 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.

     This section amends the federal Food, Drug and Cosmetic Act by inserting language under the sections relating to misbranding of commodities. It says that a food, cosmetic, drug or device is misbranded if the product or package contains an RFID tag, unless it bears a label 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. It also prescribes that the label must be 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.

     This section states that 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. That label must state 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. The label must also be in a conspicuous type-size and prominent location and in print that contrasts with the background against which it appears.

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

     This section states that a person shall not manufacture, import, or package for sale or distribution in the United States any cigarettes unless its container bears a label. That label must state 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. The label must also be in a conspicuous type-size and prominent location and in print that contrasts with the background against which it appears.

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

     This section goes directly to protecting the privacy of consumers. First it directs that 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. Second, 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. Third, a business shall not, directly or through an affiliate or nonaffiliated third party, use RFID tag identification information to identify an individual.

     Next, this section directs the Federal Trade Commission to establish appropriate standards for the businesses described in the previous paragraph. The safeguards should: insure the integrity and confidentiality of an individual's records and information; insure that RFID tag records do not identify individuals; protect against anticipated threats or hazards to the security of an individual's records and information; and protect an individual against substantial harm or inconvenience, which may result from unauthorized access to or use of an individual's records and information.

     The third section covers consumer and business education. It directs the Federal Trade Commission to 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.

     It also directs the Federal Trade Commission to 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.

     The last three sections relate to state laws, rulemaking and provides general definitions. The bill states that a State may afford an individual greater protection than the protection provided under this subchapter. It also states that the Federal Trade Commission shall prescribe regulations necessary to carry out and enforce the mandate of this subchapter. Finally the bill provides term definitions. The term "radio frequency identification" or "RFID" means technologies that use radio waves to automatically identify individual items. The term "tag" means a microchip that is attached to an antenna and can transmit identification information. The term "business" means a corporation, partnership or other entity that collects or aggregates an individual's nonpublic personal information. Finally, 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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