SB768 in California: Down with 'Spy Chips?'

I want to know what people are doing, where they are going and what they may be buying that's so preciously private. Could it be I'm missing out on something... living a hum-drum life while others do things, go places, and buy stuff that's so interesting? I figure, for example, that when I buy groceries and use my ATM or credit card, somebody could figure out my diet is atrocious... but they could have figured that out a long time ago. And, why would anyone care? And, why would I care that they care?
This link to a blog is about California Senate Bill 768 that apparently is going to put RFID on a par with Al-Queda! This is importtant because California is a bellwether state... what happens there first has a tendancy to sweep across the country. It's already arrived in nearby New Hampshire. The Foster's Sunday Citizen has been cranking out this stuff already. I'd show you, but believe it or not, you need to be a subscriber to gain access to New Hampshire's equivalent of The New York Times out of Dover and Laconia.
Can someone, anyone, paint a scenario for me explaining how RFID is going to invade my privacy in a way that injures me, compromises me, embarrasses me? Can someone explain this use of the term "spy chips?" Isn't that a little over the top? It's getting to the point that when Gladys says, "Oh Helene, I loved that outfit I saw you wearing on your way to the hairdresser the other day," Helene is going to say, "You'll be hearing from my lawyer Gladys."
Coming soon: a post about CASPIAN. Consumers Against Supermarket Privacy Invasion and Numbering. Numbering? As in the Deli counter pull a tag numbering? Whatever. Clever name nevertheless... catchy, don't you agree? How about: Stop Taking Unreasonable Positions In Defense.