Microsoft describes (word.doc) key privacy issues around RFID use, and presents recommendations to address these issues.

Abstract:

In this article, Microsoft illustrates how privacy threats can arise from RFID, and enumerates the key threats in various settings.  In general, the key threat to consumer privacy arises from a combination of circumstances that will occur at an indeterminate point in the future, not in the near term.  However, it is appropriate to consider those future circumstances and to develop practices and policies that will engage the benefits of RFID while helping to ensure that privacy is protected.  Microsoft therefore presents recommendations for responsible use of RFID in this article as well...

...Conclusion

Microsoft believes that the responsible development and deployment of RFID technology can address the privacy concerns with the use of RFID.  Continued development of radio security technology for RFID is also a necessary step in the technology’s evolution.  Application of the Fair Information Practices and other existing laws and regulations around the world provides a sound basis for addressing the privacy of individuals who use or come in contact with RFID.  Applying accepted IT controls over the data collected, developing new security tools for non-professionals, and following the well established guidelines and principles for enterprises using the technology will all contribute to responsible development and deployment of RFID in the supply chain and beyond.