Two-Thirds of Americans Object to Online Tracking

NEW YORK TIMES [NYTimes Group/Sulzberger] - By Stephanie Clifford - September 29, 2009 ABOUT two-thirds of Americans object to online tracking by advertisers - and that number rises once they learn the different ways marketers are following their online movements, according to a new survey from professors at the University of Pennsylvania and the University of California, Berkeley. The professors say they believe the study, scheduled for release on Wednesday, is the first independent, nationally representative telephone survey on behavioral advertising. The topic may be technical, but it has become a hot political issue. Privacy advocates are telling Congress and the Federal Trade Commission that tracking of online activities by Web sites and advertisers has gone too far, and the lawmakers seem to be listening. Representative Rick Boucher, Democrat of Virginia, wrote in an article for The Hill last week that he planned to introduce privacy legislation. And David Vladeck, head of consumer protection for the F.T.C., has signaled that he will examine data privacy issues closely. Marketers are arguing that advertising supports free online content. Major advertising trade groups proposed in Julysome measures that they hoped would fend off regulation, like a clear notice to consumers when they were being tracked. The data in this area, however, has been largely limited to company-financed research or Internet-based research, which survey experts say they believe is not representative of all Americans. So the study - among the first independent surveys to examine this issue - has attracted widespread interest. ... http://www.nytimes.com/2009/09/30/business/media/30adco.html?th=&adxnnl=1&emc=th&adxnnlx=1254316646-aKun0OM1VaGiFVEuPECy5w FAIR USE NOTICE: This blog contains copyrighted material the use of which has not always been specifically authorized by the copyright owner. We are making such material available in our efforts to advance understanding of religious, environmental, political, human rights, economic, democracy, scientific, and social justice issues, etc. We believe this constitutes a 'fair use' of any such copyrighted material as provided for in section 107 of the US Copyright Law. In accordance with Title 17 U.S.C. Section 107, the material on this site is distributed without profit to those who have expressed a prior interest in receiving the included information for research and educational purposes. For more information go to: http://www.law.cornell.edu/uscode/17/107.shtml. If you wish to use copyrighted material from this site for purposes of your own that go beyond 'fair use', you must obtain permission from the copyright owner.

The shopping experience of the future? RFID Tracking from Start to Finish

How Destiny would track shoppers at Carousel Center expansion THE POST-STANDARD, Syracuse, New York [Advance/Newhouse] - By Rick Moriarty - August 24, 2009 Syracuse, NY -- Hidden in a secret location deep inside the Carousel Center mall is what Destiny USA officials believe is the future of the retail industry. A 1,000-square-foot room with translucent flooring contains what appears to be a small clothing store with just two products -- T-shirts and cloth handbags with the words "Surrender the past" printed on them. But what makes the "store" unique isn't the see-through floor. It's the technology behind the walls, under the shelves and attached to each T-shirt and handbag. Through the use of a radio frequency identification system, the store can track what products a customer picks up, instantly send detailed information and customer reviews of those products to the shopper's iPhone, and make suggestions, via nearby computer screens, of other products that might interest the customer. The system even tracks customers as they walk through the store and displays on the computer screens items, in their size and preferred fabrics, that they might want to consider, based on their past shopping habits. At the self-checkout desk, the customer just drops merchandise on the desk and an antenna built into the desk picks up a radio signal from a sticker attached to each of the items and rings them up. There are no UPC symbols to scan. The customer swipes a credit card through a reader and the sale is complete. It's paperless, too. The system e-mails a receipt to the customer and records the purchase on the customer's account. Shoppers in this store cannot actually buy anything. It's set up just to give select visitors a demonstration of the technology behind Destiny's new retail concept, which it calls Arendi. Destiny partner Bruce Kenan said the model combines the convenience of Internet shopping -- the instant availability of detailed product information and comparisons from multiple manufacturers and user reviews -- with the ability to touch, smell and try a product. "This is a marriage of Internet and physical retail," said Kenan. "People are going to like it. They're going to demand it." Kenan and three executives from Terakeet Corp., the Syracuse company that is assembling the technology behind Arendi, gave a Post-Standard reporter and photographer a tour of the "store." The only condition was that the newspaper could not reveal where in the mall the room is located. Developer Robert Congel, the man behind Carousel's stalled expansion into Destiny USA, envisions the addition as a giant consumer research and development center where consumer shopping habits are tracked by a network of computers. The name Arendi is a play on the term "R&D," short for research and development. Retailers and brand makers who become part of the center would share all of the consumer insight data collected at Arendi -- in exchange for all of their profits. It's a concept that has never been tried before on a mall scale, and it has not been easy to sell the idea to a retail industry that saw sales fall 10.8 percent in the second quarter, compared with the same quarter last year. The secret "store" hidden inside Carousel Center was created to show off Arendi's technology to potential tenants. Destiny officials had planned to open a 50,000-square-foot version of Arendi to the public late this summer with a limited, undisclosed number of tenants who have agreed to be part of the demonstration. The hope was that the public demonstration would help the developer lure enough tenants to eventually fill the three-story, 1.3 million-square-foot mall expansion. Construction, which began in 2007, came to a halt in early June after Citigroup stopped advancing money on a $155 million loan to the project. The bank said it was concerned that the project was a year over schedule, at least $15 million over budget and had not a single signed lease. Congel is suing Citigroup, alleging it breached its loan agreement. The sudden halt to construction has not dimmed the development team's enthusiasm for Arendi, however. Kenan said it's amazing no one thought of combining e-commerce with stores in this way before. The goal of Arendi will be to give shoppers at the mall all of the things they like about online shopping -- primarily instant access to product information -- while they walk through a store, touching and feeling the merchandise, he said. And it will benefit retailers and product makers because they can personalize their in-store sales promotions to customers as they shop. The system also can help retailers keep instant track of when to reorder popular merchandise, he said. "One of the worst things for retailers is to run out of a product that is in demand," he said. Customers would have to register at an Arendi Web site, providing their name and e-mail address. If they'd like, they could also provide personal information such as age, clothing sizes and preferred fabrics. In return, they would be given customer ID tags, plastic cards about the size of credit cards. They would carry the cards with them when they go shopping at Arendi, just as they carry shoppers club cards to grocery stores. "Once you're registered, you can just walk around and shop as you normally would," said Ryan Garver, lead developer for Terakeet. In a demonstration of the technology, Garver walked with the card to a shelf full of T-shirts and a large computer screen in the middle. As he approached the shirts, the screen displayed a picture of one of the shirts, in his size. An antenna under the display read an electronic signal from his customer ID tag and called up information he provided about himself when he registered. If a group of customers approached a merchandise display, the system would know who they are and display information that it believed would be of interest to a majority of them, he said. To find out more about the merchandise in front of him, Garver glanced at his iPhone. Terakeet has written an application for the iPhone that will talk to Arendi's computer network through the Internet to provide customers with more detailed information about the products they are looking at. Garver said the company plans to write similar applications for other hand-held communications devices, too. If a store in Arendi did not have the size and color of the product a customer wants, it could be ordered from the interactive computer displays in the store or through the customer's iPhone or other Web-based communication devices, he said. Kenan said retailers will be able to use information collected at Arendi -- not just data collected in their own stores or display areas -- to improve the customer experience at all of their locations. "We'll have a knowledge base that no other retailer can get by themselves," he said. Staff writer Rick Moriarty can be reached at 470-3148 or rmoriarty@syracuse.com http://www.syracuse.com/news/index.ssf/2009/08/how_destiny_would_track_shoppe.html FAIR USE NOTICE: This blog contains copyrighted material the use of which has not always been specifically authorized by the copyright owner. We are making such material available in our efforts to advance understanding of religious, environmental, political, human rights, economic, democracy, scientific, and social justice issues, etc. We believe this constitutes a 'fair use' of any such copyrighted material as provided for in section 107 of the US Copyright Law. In accordance with Title 17 U.S.C. Section 107, the material on this site is distributed without profit to those who have expressed a prior interest in receiving the included information for research and educational purposes. For more information go to: http://www.law.cornell.edu/uscode/17/107.shtml. If you wish to use copyrighted material from this site for purposes of your own that go beyond 'fair use', you must obtain permission from the copyright owner.

Dollar loses reserve status to yen & euro

NEW YORK POST [News Corporation/Murdoch] - By Paul Tharp - October 13, 2009 Ben Bernanke's dollar crisis went into a wider mode yesterday as the greenback was shockingly upstaged by the euro and yen, both of which can lay claim to the world title as the currency favored by central banks as their reserve currency. Over the last three months, banks put 63 percent of their new cash into euros and yen -- not the greenbacks -- a nearly complete reversal of the dollar's onetime dominance for reserves, according to Barclays Capital. The dollar's share of new cash in the central banks was down to 37 percent -- compared with two-thirds a decade ago. Currently, dollars account for about 62 percent of the currency reserve at central banks -- the lowest on record, said the International Monetary Fund. Bernanke could go down in economic history as the man who killed the greenback on the operating table. After printing up trillions of new dollars and new bonds to stimulate the US economy, the Federal Reserve chief is now boxed into a corner battling two separate monsters that could devour the economy -- ravenous inflation on one hand, and a perilous recession on the other. "He's in a crisis worse than the meltdown ever was," said Peter Schiff, president of Euro Pacific Capital. "I fear that he could be the Fed chairman who brought down the whole thing." Investors and central banks are snubbing dollars because the greenback is kept too weak by zero interest rates and a flood of greenbacks in the global economy. They grumble that they've loaned the US record amounts to cover its mounting debt, but are getting paid back by a currency that's worth 10 percent less in the past three months alone. In a decade, it's down nearly one-third. Yesterday, the dollar had a mixed performance, falling slightly against the British pound to $1.5801 from $1.5846 Friday, but rising against the euro to $1.4779 from $1.4709 and against the yen to 89.85 yen from 89.78. Economists believe the market rebellion against the dollar will spread until Bernanke starts raising interest rates from around zero to the high single digits, and pulls back the flood of currency spewed from US printing presses. "That's a cure, but it's also going to stifle any US economic growth," said Schiff. "The economy is addicted to the cheap interest and liquidity." Economists warn that a jump in rates will clobber stocks and cripple the already stalled housing market. "Bernanke's other choice is to keep rates at zero, print even more money and sell more debt, but we'll see triple-digit inflation that could collapse the economy as we know it. "The stimulus is what's toxic -- we're poisoning ourselves and the global economy with it." http://www.nypost.com/p/news/business/dollar_loses_reserve_status_to_yen_hFyfwvpBW1YYLykSJwTTEL FAIR USE NOTICE: This blog contains copyrighted material the use of which has not always been specifically authorized by the copyright owner. We are making such material available in our efforts to advance understanding of religious, environmental, political, human rights, economic, democracy, scientific, and social justice issues, etc. We believe this constitutes a 'fair use' of any such copyrighted material as provided for in section 107 of the US Copyright Law. In accordance with Title 17 U.S.C. Section 107, the material on this site is distributed without profit to those who have expressed a prior interest in receiving the included information for research and educational purposes. For more information go to: http://www.law.cornell.edu/uscode/17/107.shtml. If you wish to use copyrighted material from this site for purposes of your own that go beyond 'fair use', you must obtain permission from the copyright owner.

Pay with a wave of your hand?

An implantable chip could allow you to charge purchases or even start your car. It'd be convenient, to be sure. But would it be too creepy? CREDITCARDS.com - By Jay MacDonald - September 11, 2009 It's a simple concept, really: You inject a miniature radio frequency identifier the size of a grain of rice between your thumb and forefinger and, with a wave of your hand, unlock doors, turn on lights, start your car or pay for your drinks at an ultrachic nightspot. The problem is, the whole concept is a little geeky for most of us, nauseating for some, Orwellian for a few and even apocalyptic for a smattering of religious fundamentalists. Forget the science of it -- and yes, it does work remarkably well. Forget the convenience of it. Forget that similar identifying technologies, from bar codes to mag stripes, overcame similar obstacles and are now ubiquitous. Radio frequency ID implants face a hurdle the others did not: ickiness. "There is sort of an icky quality to implanting something," says Rome Jette, the vice president for smart cards at Versatile Card Technology, a Downers Grove, Ill., card manufacturer that ships 1.5 billion cards worldwide a year. How RFID devices work The RFID technology is un-yucky, however. The implanted tag -- a passive RFID device consisting of a miniature antenna and chip containing a 16-digit identification number -- is scanned by an RFID reader. Once verified, the number is used to unlock a database file, be it a medical record or payment information. Depending upon the application, a reader may verify tags at a distance of 4 inches up to about 30 feet. The RFID implant has been around for more than 20 years. In its earliest iteration, it provided a convenient way to keep track of dogs, cats and prized racehorses. Few took note or voiced much concern. ... Then, in 2002, Applied Digital Solutions (now Digital Angel) of Delray Beach, Fla., deployed to its foreign distributors a beta version of its patented VeriChip technology for human use. Two years later, the VeriChip became the first subcutaneous RFID chip to receive FDA approval as a Class 2 medical device. One VeriChip distributor in Spain sold the concept to the ultratrendy Baja Beach Club, which offered its patrons in Barcelona and Amsterdam the option of having an implant inserted in their upper arms to pay for their drinks without having to carry wallets in their swimsuits. Judging by the ensuing outrage, you would think VeriChip had given the pope a wedgie. 'Mark of the beast'? Web sites sprouted like mushrooms, accusing VeriChip of being the biblical "mark of the beast" predicted in the Book of Revelations as a foreshadowing of the end of the world. CEO Scott Silverman was equally vilified as being tied to Satan or, worse, Wall Street. Big Brother was surely coming, though he'd have to get pretty close to read your implant. Claims that the tags cause cancer based on lab rat tests upped the amps of outrage. Were people suddenly curious about RFID implants? "Curiosity is probably an understatement," Silverman concedes. "People have always taken interest in VeriChip. Part of the lore and part of the trouble of this company over the past five years has been just that." Though VeriChip played no part in using its implant as a payment device, the company quickly moved to calmer waters. Today, it markets its VeriMed Health Link patient identification system to help hospitals treat noncommunicative patients in an emergency. Its future may include more advanced medical applications, including a biosensor system to detect glucose levels. "A lot of the negative press that we received was a direct result of people having a misconception of what this technology is all about," says Silverman. "We believe that the medical application was and still is the best application for this technology. "That said, if and when it does become mainstream and more patients are utilizing it for their medical records or for diagnostic purposes, if they want to elect to use it for other applications, certainly they'll be able to do that. But it's going to take a company much larger than us to distribute the retail reader end of it into the Wal-Marts of the world." Versatile's Jette has watched contactless RFID battle for acceptance in the credit card arena. Just as Silverman suggests, the dynamics and scale of the payment industry tends to work against widespread deployment. "Mobil Speedpass tried to do it; they got some traction and decided to see if there was any mileage to take this to a Walgreens or McDonald's. You used to be able to use your Speedpass at McDonalds, but that ended because, at the end of the day, you still only have two gigantic payment processors out there, Visa and MasterCard," he says. "To me, the idea of any kind of payment device having ubiquity requires an awful lot of back-end cooperation, of people willing to say, 'I don't need my brand in the customer's wallet.'" Although the coolness factor is effective from a marketing standpoint -- American Express Blue with its smart (if largely unused) chip is a good example -- Jette says most cardholders would balk at the very thought of a needle. "With the implanting in the nightclubs, there is a cache of exclusivity there, especially among a certain demographic where people are piercing themselves and getting tattoos. But those are things that really only 20-somethings do a lot. I really doubt that there will be any market for injectable RFID tags or even any single point-of-sale payment device." "A lot of times, the technology is a solution looking for a problem. Sometimes people fall in love with the technology for its own sake and then try to evangelize a home for it. My business group is just smart cards, and I never forget that although we make money with smart cards, the bills are paid with mag stripe cards. As backwards and old-fashioned as they are, that is still the bulk of what the transactions are going to be in America for a very long time." This article was reported by Jay MacDonald for CreditCards.com. http://articles.moneycentral.msn.com/Banking/FinancialPrivacy/pay-with-a-wave-of-your-hand.aspx FAIR USE NOTICE: This blog contains copyrighted material the use of which has not always been specifically authorized by the copyright owner. We are making such material available in our efforts to advance understanding of religious, environmental, political, human rights, economic, democracy, scientific, and social justice issues, etc. We believe this constitutes a 'fair use' of any such copyrighted material as provided for in section 107 of the US Copyright Law. In accordance with Title 17 U.S.C. Section 107, the material on this site is distributed without profit to those who have expressed a prior interest in receiving the included information for research and educational purposes. For more information go to: http://www.law.cornell.edu/uscode/17/107.shtml. If you wish to use copyrighted material from this site for purposes of your own that go beyond 'fair use', you must obtain permission from the copyright owner.

China’s REAL ID: Name Not on Our List? Change It, China Says

NEW YORK TIMES [NYTimes Group/Sulzberger] - By Sharon LaFraniere - April 20, 2009 BEIJING - “Ma,” a Chinese character for horse, is the 13th most common family name in China, shared by nearly 17 million people. That can cause no end of confusion when Mas get together, especially if those Mas also share the same given name, as many Chinese do. Ma Cheng’s book-loving grandfather came up with an elegant solution to this common problem. Twenty-six years ago, when his granddaughter was born, he combed through his library of Chinese dictionaries and lighted upon a character pronounced “cheng.” Cheng, which means galloping steeds, looks just like the character for horse, except that it is condensed and written three times in a row. The character is so rare that once people see it, Miss Ma said, they tend to remember both her and her name. That is one reason she likes it so much. That is also why the government wants her to change it. For Ma Cheng and millions of others, Chinese parents’ desire to give their children a spark of individuality is colliding head-on with the Chinese bureaucracy’s desire for order. Seeking to modernize its vast database on China’s 1.3 billion citizens, the government’s Public Security Bureau has been replacing the handwritten identity card that every Chinese must carry with a computer-readable one, complete with color photos and embedded microchips. The new cards are harder to forge and can be scanned at places like airports where security is a priority. The bureau’s computers, however, are programmed to read only 32,252 of the roughly 55,000 Chinese characters, according to a 2006 government report. The result is that Miss Ma and at least some of the 60 million other Chinese with obscure characters in their names cannot get new cards - unless they change their names to something more common. Moreover, the situation is about to get worse or, in the government’s view, better. Since at least 2003, China has been working on a standardized list of characters for people to use in everyday life, including when naming children. One newspaper reported last week that the list would be issued later this year and would curb the use of obscure names. A government linguistics official told Xinhua, the state-run news agency, that the list would include more than 8,000 characters. Although that is far fewer than the database now supposedly includes, the official said it was more than enough “to convey any concept in any field.” About 3,500 characters are in everyday use. Government officials suggest that names have gotten out of hand, with too many parents picking the most obscure characters they can find or even making up characters, like linguistic fashion accessories. But many Chinese couples take pride in searching the rich archives of classical Chinese to find a distinctive, pleasing name, partly to help their children stand out in a society with strikingly few surnames. By some estimates, 100 surnames cover 85 percent of China’s citizens. Laobaixing, or “old hundred names,” is a colloquial term for the masses. By contrast, 70,000 surnames cover 90 percent of Americans. The number of Chinese family names in use has tended to shrink as China’s population has grown, a winnowing of surnames that has occurred in many cultures over time. At last count, China’s Wangs were leading with more than 92 million, followed by 91 million Lis and 86 million Zhangs. To refer to an unidentified person — the equivalent of “just anybody” in English — one Chinese saying can be loosely translated this way: “some Zhang, some Li.” The potential for mix-ups is vast. There are nearly enough Chinese named Zhang Wei to populate the city of Pittsburgh. Nicknames are liberally bestowed in classrooms and workplaces to tell people apart. Confronting three students named Liu Fang, for example, one middle-school teacher nicknamed them Big, Little and Middle. Wang Daliang, a linguistics scholar with the China Youth University for Political Science, said picking rare characters for given names only compounded the problem and inconvenienced everyone. “Using obscure names to avoid duplication of names or to be unique is not good,” he wrote in an e-mail response to questions. “Now a lot of people are perplexed by their names,” he said. “The computer cannot even recognize them and people cannot read them. This has become an obstacle in communication.” But Professor Zhou Youyong, dean of Southeast University’s law school, said the government should tread carefully in issuing any new regulation. “The right to name children is a basic right of citizens,” he said. Miss Ma said that while her given name was unusual, bank employees, passport control clerks and ticket agents had always managed to deal with it, usually by writing it by hand. But when she tried to renew her identity card last August, she said, Beijing public security officials turned her down flat. “Your name is so troublesome and problematic,” she recalled an official telling her. “Just change it.” Miss Ma argues that the government’s technology should adapt, not her. “There were no such regulations when I was born, so I should be entitled to keep my name for my whole life,” she said. If she changes her name to get an identity card, she noted, it will be wrong on all of her other documents, like her passport and university diploma. Besides, she said, “I can’t think of another, better name.” Using the time-honored Chinese method of backdoor connections, Miss Ma was able to get a temporary card in January. She must renew it every three months but considers that a small sacrifice for keeping her name. Zhao C., a 23-year-old college student, gave up the fight for his. His father, a lawyer, chose the letter C from the English alphabet, saying it was simple, memorable and stood for China. When he could not get a new identity card in 2006, Zhao C. sued. But security officials convinced him that it would cost millions of dollars to alter the database, his father said, so he dropped the suit in February. His case might suggest that resistance against China’s powerful bureaucracy was futile. Still, the government’s plan to limit the use of characters has not gone all that smoothly. The new rules were originally supposed to be issued by 2005. Now, 70 revisions later, they have yet to be put in place. An official this week batted away questions, saying publicity might delay the rules even longer. Huang Yuanxi contributed research. http://www.nytimes.com/2009/04/21/world/asia/21china.html?th&emc=th FAIR USE NOTICE: This blog contains copyrighted material the use of which has not always been specifically authorized by the copyright owner. We are making such material available in our efforts to advance understanding of religious, environmental, political, human rights, economic, democracy, scientific, and social justice issues, etc. We believe this constitutes a 'fair use' of any such copyrighted material as provided for in section 107 of the US Copyright Law. In accordance with Title 17 U.S.C. Section 107, the material on this site is distributed without profit to those who have expressed a prior interest in receiving the included information for research and educational purposes. For more information go to: http://www.law.cornell.edu/uscode/17/107.shtml. If you wish to use copyrighted material from this site for purposes of your own that go beyond 'fair use', you must obtain permission from the copyright owner.

Chip implants linked to animal tumors

ASSOCIATED PRESS - By Todd Lewan - September 10, 2007 When the U.S. Food and Drug Administration approved implanting microchips in humans, the manufacturer said it would save lives, letting doctors scan the tiny transponders to access patients' medical records almost instantly. The FDA found "reasonable assurance" the device was safe, and a sub-agency even called it one of 2005's top "innovative technologies." But neither the company nor the regulators publicly mentioned this: A series of veterinary and toxicology studies, dating to the mid-1990s, stated that chip implants had "induced" malignant tumors in some lab mice and rats. "The transponders were the cause of the tumors," said Keith Johnson, a retired toxicologic pathologist, explaining in a phone interview the findings of a 1996 study he led at the Dow Chemical Co. in Midland, Mich. Leading cancer specialists reviewed the research for The Associated Press and, while cautioning that animal test results do not necessarily apply to humans, said the findings troubled them. Some said they would not allow family members to receive implants, and all urged further research before the glass-encased transponders are widely implanted in people. To date, about 2,000 of the so-called radio frequency identification, or RFID, devices have been implanted in humans worldwide, according to VeriChip Corp. The company, which sees a target market of 45 million Americans for its medical monitoring chips, insists the devices are safe, as does its parent company, Applied Digital Solutions, of Delray Beach, Fla. "We stand by our implantable products which have been approved by the FDA and/or other U.S. regulatory authorities," Scott Silverman, VeriChip Corp. chairman and chief executive officer, said in a written response to AP questions. The company was "not aware of any studies that have resulted in malignant tumors in laboratory rats, mice and certainly not dogs or cats," but he added that millions of domestic pets have been implanted with microchips, without reports of significant problems. "In fact, for more than 15 years we have used our encapsulated glass transponders with FDA approved anti-migration caps and received no complaints regarding malignant tumors caused by our product." The FDA also stands by its approval of the technology. Did the agency know of the tumor findings before approving the chip implants? The FDA declined repeated AP requests to specify what studies it reviewed. The FDA is overseen by the Department of Health and Human Services, which, at the time of VeriChip's approval, was headed by Tommy Thompson. Two weeks after the device's approval took effect on Jan. 10, 2005, Thompson left his Cabinet post, and within five months was a board member of VeriChip Corp. and Applied Digital Solutions. He was compensated in cash and stock options. Thompson, until recently a candidate for the 2008 Republican presidential nomination, says he had no personal relationship with the company as the VeriChip was being evaluated, nor did he play any role in FDA's approval process of the RFID tag. "I didn't even know VeriChip before I stepped down from the Department of Health and Human Services," he said in a telephone interview. Also making no mention of the findings on animal tumors was a June report by the ethics committee of the American Medical Association, which touted the benefits of implantable RFID devices. Had committee members reviewed the literature on cancer in chipped animals? No, said Dr. Steven Stack, an AMA board member with knowledge of the committee's review. Was the AMA aware of the studies? No, he said. ___ Published in veterinary and toxicology journals between 1996 and 2006, the studies found that lab mice and rats injected with microchips sometimes developed subcutaneous "sarcomas" - malignant tumors, most of them encasing the implants. • A 1998 study in Ridgefield, Conn., of 177 mice reported cancer incidence to be slightly higher than 10 percent - a result the researchers described as "surprising." • A 2006 study in France detected tumors in 4.1 percent of 1,260 microchipped mice. This was one of six studies in which the scientists did not set out to find microchip-induced cancer but noticed the growths incidentally. They were testing compounds on behalf of chemical and pharmaceutical companies; but they ruled out the compounds as the tumors' cause. Because researchers only noted the most obvious tumors, the French study said, "These incidences may therefore slightly underestimate the true occurrence" of cancer. • In 1997, a study in Germany found cancers in 1 percent of 4,279 chipped mice. The tumors "are clearly due to the implanted microchips," the authors wrote. Caveats accompanied the findings. "Blind leaps from the detection of tumors to the prediction of human health risk should be avoided," one study cautioned. Also, because none of the studies had a control group of animals that did not get chips, the normal rate of tumors cannot be determined and compared to the rate with chips implanted. Still, after reviewing the research, specialists at some pre-eminent cancer institutions said the findings raised red flags. "There's no way in the world, having read this information, that I would have one of those chips implanted in my skin, or in one of my family members," said Dr. Robert Benezra, head of the Cancer Biology Genetics Program at the Memorial Sloan-Kettering Cancer Center in New York. Before microchips are implanted on a large scale in humans, he said, testing should be done on larger animals, such as dogs or monkeys. "I mean, these are bad diseases. They are life-threatening. And given the preliminary animal data, it looks to me that there's definitely cause for concern." Dr. George Demetri, director of the Center for Sarcoma and Bone Oncology at the Dana-Farber Cancer Institute in Boston, agreed. Even though the tumor incidences were "reasonably small," in his view, the research underscored "certainly real risks" in RFID implants. In humans, sarcomas, which strike connective tissues, can range from the highly curable to "tumors that are incredibly aggressive and can kill people in three to six months," he said. At the Jackson Laboratory in Maine, a leader in mouse genetics research and the initiation of cancer, Dr. Oded Foreman, a forensic pathologist, also reviewed the studies at the AP's request. At first he was skeptical, suggesting that chemicals administered in some of the studies could have caused the cancers and skewed the results. But he took a different view after seeing that control mice, which received no chemicals, also developed the cancers. "That might be a little hint that something real is happening here," he said. He, too, recommended further study, using mice, dogs or non-human primates. Dr. Cheryl London, a veterinarian oncologist at Ohio State University, noted: "It's much easier to cause cancer in mice than it is in people. So it may be that what you're seeing in mice represents an exaggerated phenomenon of what may occur in people." Tens of thousands of dogs have been chipped, she said, and veterinary pathologists haven't reported outbreaks of related sarcomas in the area of the neck, where canine implants are often done. (Published reports detailing malignant tumors in two chipped dogs turned up in AP's four-month examination of research on chips and health. In one dog, the researchers said cancer appeared linked to the presence of the embedded chip; in the other, the cancer's cause was uncertain.) Nonetheless, London saw a need for a 20-year study of chipped canines "to see if you have a biological effect." Dr. Chand Khanna, a veterinary oncologist at the National Cancer Institute, also backed such a study, saying current evidence "does suggest some reason to be concerned about tumor formations." Meanwhile, the animal study findings should be disclosed to anyone considering a chip implant, the cancer specialists agreed. To date, however, that hasn't happened. ___ The product that VeriChip Corp. won approval for use in humans is an electronic capsule the size of two grains of rice. Generally, it is implanted with a syringe into an anesthetized portion of the upper arm. When prompted by an electromagnetic scanner, the chip transmits a unique code. With the code, hospital staff can go on the Internet and access a patient's medical profile that is maintained in a database by VeriChip Corp. for an annual fee. VeriChip Corp., whose parent company has been marketing radio tags for animals for more than a decade, sees an initial market of diabetics and people with heart conditions or Alzheimer's disease, according to a Securities and Exchange Commission filing. The company is spending millions to assemble a national network of hospitals equipped to scan chipped patients. But in its SEC filings, product labels and press releases, VeriChip Corp. has not mentioned the existence of research linking embedded transponders to tumors in test animals. When the FDA approved the device, it noted some Verichip risks: The capsules could migrate around the body, making them difficult to extract; they might interfere with defibrillators, or be incompatible with MRI scans, causing burns. While also warning that the chips could cause "adverse tissue reaction," FDA made no reference to malignant growths in animal studies. Did the agency review literature on microchip implants and animal cancer? Dr. Katherine Albrecht, a privacy advocate and RFID expert, asked shortly after VeriChip's approval what evidence the agency had reviewed. When FDA declined to provide information, she filed a Freedom of Information Act request. More than a year later, she received a letter stating there were no documents matching her request. "The public relies on the FDA to evaluate all the data and make sure the devices it approves are safe," she says, "but if they're not doing that, who's covering our backs?" Late last year, Albrecht unearthed at the Harvard medical library three studies noting cancerous tumors in some chipped mice and rats, plus a reference in another study to a chipped dog with a tumor. She forwarded them to the AP, which subsequently found three additional mice studies with similar findings, plus another report of a chipped dog with a tumor. Asked if it had taken these studies into account, the FDA said VeriChip documents were being kept confidential to protect trade secrets. After AP filed a FOIA request, the FDA made available for a phone interview Anthony Watson, who was in charge of the VeriChip approval process. "At the time we reviewed this, I don't remember seeing anything like that," he said of animal studies linking microchips to cancer. A literature search "didn't turn up anything that would be of concern." In general, Watson said, companies are expected to provide safety-and-effectiveness data during the approval process, "even if it's adverse information." Watson added: "The few articles from the literature that did discuss adverse tissue reactions similar to those in the articles you provided, describe the responses as foreign body reactions that are typical of other implantable devices. The balance of the data provided in the submission supported approval of the device." Another implantable device could be a pacemaker, and indeed, tumors have in some cases attached to foreign bodies inside humans. But Dr. Neil Lipman, director of the Research Animal Resource Center at Memorial Sloan-Kettering, said it's not the same. The microchip isn't like a pacemaker that's vital to keeping someone alive, he added, "so at this stage, the payoff doesn't justify the risks." Silverman, VeriChip Corp.'s chief executive, disagreed. "Each month pet microchips reunite over 8,000 dogs and cats with their owners," he said. "We believe the VeriMed Patient Identification System will provide similar positive benefits for at-risk patients who are unable to communicate for themselves in an emergency." ___ And what of former HHS secretary Thompson? When asked what role, if any, he played in VeriChip's approval, Thompson replied: "I had nothing to do with it. And if you look back at my record, you will find that there has never been any improprieties whatsoever." FDA's Watson said: "I have no recollection of him being involved in it at all." VeriChip Corp. declined comment. Thompson vigorously campaigned for electronic medical records and healthcare technology both as governor of Wisconsin and at HHS. While in President Bush's Cabinet, he formed a "medical innovation" task force that worked to partner FDA with companies developing medical information technologies. At a "Medical Innovation Summit" on Oct. 20, 2004, Lester Crawford, the FDA's acting commissioner, thanked the secretary for getting the agency "deeply involved in the use of new information technology to help prevent medication error." One notable example he cited: "the implantable chips and scanners of the VeriChip system our agency approved last week." After leaving the Cabinet and joining the company board, Thompson received options on 166,667 shares of VeriChip Corp. stock, and options on an additional 100,000 shares of stock from its parent company, Applied Digital Solutions, according to SEC records. He also received $40,000 in cash in 2005 and again in 2006, the filings show. The Project on Government Oversight called Thompson's actions "unacceptable" even though they did not violate what the independent watchdog group calls weak conflict-of-interest laws. "A decade ago, people would be embarrassed to cash in on their government connections. But now it's like the Wild West," said the group's executive director, Danielle Brian. Thompson is a partner at Akin Gump Strauss Hauer & Feld LLP, a Washington law firm that was paid $1.2 million for legal services it provided the chip maker in 2005 and 2006, according to SEC filings. He stepped down as a VeriChip Corp. director in March to seek the GOP presidential nomination, and records show that the company gave his campaign $7,400 before he bowed out of the race in August. In a TV interview while still on the board, Thompson was explaining the benefits - and the ease - of being chipped when an interviewer interrupted: "I'm sorry, sir. Did you just say you would get one implanted in your arm?" "Absolutely," Thompson replied. "Without a doubt." "No concerns at all?" "No." But to date, Thompson has yet to be chipped himself. ___ On the Web: http://www.verichipcorp.com http://www.antichips.com http://www.fda.gov/cdrh/ http://news.yahoo.com/s/ap/20070909/ap_on_re_us/chipping_america_ii_2 FAIR USE NOTICE: This blog contains copyrighted material the use of which has not always been specifically authorized by the copyright owner. We are making such material available in our efforts to advance understanding of religious, environmental, political, human rights, economic, democracy, scientific, and social justice issues, etc. We believe this constitutes a 'fair use' of any such copyrighted material as provided for in section 107 of the US Copyright Law. In accordance with Title 17 U.S.C. Section 107, the material on this site is distributed without profit to those who have expressed a prior interest in receiving the included information for research and educational purposes. For more information go to: http://www.law.cornell.edu/uscode/17/107.shtml. If you wish to use copyrighted material from this site for purposes of your own that go beyond 'fair use', you must obtain permission from the copyright owner.