Tesco is in hot water with a US consumer privacy groups over its use of radio frequency identification tags (RFID).
US organizations have slammed the technology as “spy chips” because they fear the tags will be used to track customer behaviour and are calling for a boycott on the retailer.
However, Tesco said the equipment, currently only being trialled on high value items in 10 of its stores, was merely to help the distribution process.
A spokeswoman said: “Suggestions that Tesco might use this technology to track products once they have been purchased would be illegal in Europe.
“The radio barcode is only activate when in close proximity to the reader located in the store or distribution centre.”
Up until now, the retailer has only been using the chips on cases of non-food items at its distribution centres and the new trials were designed to help Tesco track product through the supply chain to its stores.
However US group, Consumers Against Supermarket Privacy Invasion and Numbering, is calling for a boycott.
Director Katherine Albrecht said: “More people across Britain will be taking home items containing spy chips and that is simply unacceptable.”
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