Imagine a world in which retailers and manufacturers know where every consumer item is at all times. From manufacture to the point of sale, every consumer item can be tracked individually along the supply chain. Out-of-stocks are virtually eliminated. Imagine finding every item on your list, every time you go into a store--any store. Would you spend less? According to the retail industry you would. Retailers claim that radio frequency identification (RFID) technology will transform the way business is done and the shopping experience itself by reducing out-of-stock merchandise and tracking inventory throughout the supply chain. Accordingly, shoppers will pay less for items, because the cost of doing business will be less.

RFID technology allows retailers to track manufacturers' items from a distribution center, through transit, and on to individual stores. Once at the store, RFID tells managers how many items are in stock and exactly where those items are, right down to the particular shelf the item is sitting on. To that end, retailers are promoting "item-level tagging," where every item's packaging is affixed with an RFID tag.