In an article at TechCentralStation, Instapundit writes about his fears that the nanotechnology industry is setting itself up for a PR disaster. It's all because that industry's very own spokespersons are mishandling criticism, he says.

There is a corollary between the nanotechnology industry and the RFID industry. Both are technologies that are not widely understood by the public. Lack of understanding gives rise to fears -- both the legitimate kind and the overblown, unsubstantiated, sci-fi inspired kind.

Yet, it is the way the nanotechnology industry is handling those fears that creates the problem, according to Instapundit. He points out his concern is an industry that does not effectively address legitimate concerns, and doesn't anticipate and forestall issues. The nanotech industry group is even alienating its supporters, he says, just because those supporters are openly discussing legitimate issues.

I bring this all up here because the RFID industry can learn a lesson from the nanotech industry.

The RFID industry is at a critical time. It needs to make the right decisions as to how it responds to public privacy concerns and the industry's critics.

Now, I am not in any way suggesting that the RFID industry spokespersons or groups are mishandling anything. Not at all. On the contrary, from what I have seen, groups such as AIM Global, a trade association representing the RFID industry in the United States, seem to be gearing up to do a pretty effective job. They moved to debunk harmful urban legends such as RFID chips in US$20 bills, urban legends that only serve to increase public distrust of RFID. And they seem to have done an effective job putting out good, balanced information for the general public, such as RFID FAQs.

Only by openly acknowledging and adequately addressing privacy issues can the RFID industry move ahead quickly and without stumbling. RFID attracts its share of tinfoil hat types. Some privacy concerns are overblown. Yet, there are some fundamentally valid concerns at the heart of the privacy debate. Concerns that make even the most enthusiastic RFID supporters (like me) uncomfortable if left unaddressed.

The RFID industry groups need to have a PR strategy that helps the public separate the legitimate issues from those that are based on fiction or improbabilities. They need to work collaboratively with legislators and businesses to safeguard individual privacy.

That means getting businesses to self-regulate, i.e., voluntarily adopt standards to ensure privacy. And, even though I am a free markets person who abhores excess regulation, dare I suggest that the RFID industry may have to consider working with lawmakers to pass reasonable, balanced privacy laws if that will forestall more onerous regulation?