Happy birthday to the barcode

That ubiquitous yet mysterious barcoded label found on almost every consumer product imaginable turned 35 years old this week. The Universal Product Code, or UPC, as it's known, has been around so long that many of us have forgotten how grocery clerks, for example, used to press numeric keys on an actual mechanical cash register to painstakingly ring up product prices. I can still remember the metallic crescendo the adding machine played when the cashier tallied the order total.

I also recall the widespread concern that accompanied the debut of all those cryptic lines. Many skeptical consumers worried about pricing accuracy and complained that the speedy scanners worked so fast it was almost impossible to make sure the prices were on target. 

In our recent supermarkets report, readers we surveyed found scanners to be accurate most of the time. Only 6 percent of those surveyed said they'd been overcharged in the past year – a number that's held steady for a long time now.

To be fair, don't blame the scanner if you're charged the wrong price. Human error is usually at fault. UPC labels, comprised of 59 machine-readable black-and-white bars and 12 human-readable digits, don't specify the price of an item. Both bars and digits convey the same information: the identity of a specific product and its manufacturer. The barcode contains a unique number that communicates what that item is to the store's main computer. The computer, in turn, contains a database that matches each product with a price, which is transmitted to the individual checkstands. If signs and labels aren't updated when price changes are entered into the database, consumers pay the wrong price. And more often than not, the mixup results in an overcharge, not an undercharge. Although it's not the law, many supermarket chains make it a policy to give you the item for free if it rings up incorrectly. But it's up to you to point out the error to the clerk.

According to GS1 US, the not-for-profit organization that oversees and administers standards for electronic labeling, the changeover from old-fashioned price tags to scannable UPC labels has resulted in a faster and more-accurate transactions, better inventory control, and staggering cost savings for industry. One study estimates that grocery stores alone saved an estimated $17 billion from improved productivity, while enabling consumers to speed through the checkout faster. Barcode labels also help grocers order more efficiently, track product movement from production to shelf, replenish stock more quickly, and increase the frequency and variety of sales and promotions. In addition, the labels make for simpler product returns and rebates.

Look for the next generation of barcode labels to be even smaller and more capable. Beginning in January, the labels will be configured to so they can transmit expiration or best-used-by dates, for instance. Changes are already happening. More and more supermarkets are marking loose produce with tiny barcoded labels like the one at right, known at the "GS1 DataBar." While many sellers are retaining the familiar 4-digit "PLU" (price look up) code, the addition of a barcode allows grocers to now know not just that they sold a bunch of bananas, but whether the bunch was Dole or Chiquita. The PLU doesn't provide that information. 

Other high-tech labeling vehicles also exist that allow the code to be read by radio-frequency identification technology (think E-Z Pass). That eliminates having to scan the product code directly, thus making the checkout process nearly instantaneous. Many products include such RFID tags such as credit cards, prescription-medication packaging, televisions, and computers. RFID technology is not without its critics, however, because of potential concerns over privacy issues and identity theft. To read more, click here.