While the technology has raised privacy concerns because of the potential to track a person's whereabouts and purchases, officials at 32M said the data in the microchip is encrypted and does not use GPS.
But a professor at the University of Wisconsin-Milwaukee said he worries about the potential for "function creep", where the stated purpose of a technology ends up spilling over into other uses, including surveillance.
"This is one of those technologies that sound like it might create some kind of efficiency, but to me the downside is just too great," said Michael Zimmer, who teaches internet ethics and privacy at the college's School of Information Studies.
Zimmer said what 32M is trying to achieve can be done through less invasive means, like with an iPhone app.
"Part of my general concern is that we don't go too fast and that we understand the implications of these sorts of (technologies), which is why it's good we're having this conversation," he said.