Such legislation could have broad implications for RFID product manufacturers, distributors and users, he said.

Further repercussions

Even for companies that use RFID strictly for inventory control or supply chain management, such laws could lead to IT spending on the security infrastructure changes needed for compliance, Farry said.

He urged that RFID advocates do more to educate the public and governmental bodies about the benefits of the technology and thus remove the sinister stigma that some opponents have fostered.

Kevin Brown, director of information systems at Daisy Brand LP, a Dallas-based maker of sour cream products that uses RFID systems, said, "It is understandable for the states to begin this type of legislation where technology has the potential for abuse."