The European Commission will develop guidelines for the use of radio frequency identification, or RFID, in businesses and government.
RFID technology is used to identify assets wirelessly at short range, and is used in many industries to help make companies more efficient and to prevent theft.
Speaking at the CeBit technology trade show in Hannover, Germany, on Thursday, information society commissioner Viviane Reding said the Commission would draft rules later this year to amend EU e-privacy legislation that factors into the use of RFID.
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