That depends upon what you consider 'Big Brother' to be. For example, Target and Wal-Mart use RFID in razor packages, among others, to track where consumers go in the store and how much time is spent in each aisle. Sensors in end caps track the signal and, eventually, link your shopping trip with your credit card information and purchases.
No they don't. See, that's what I mean. That's a made-up news story that has been passed around and had become apocryphal.
RFID is indeed present and is becoming ubiquitous, no doubt about it.
But RFID tags are passive. They typically contain no power supply - they do not radiate any RF that could be picked up and tracked - unless and until they are irradiated with RF from very close by.
This is how RFID parts tracking works. Wal-Mart requires RFID tags in the goods it buys, and then uses massive 'wands' to track movement in and out of its warehouses.
In the experiment Wal-Mart did run - they planted RFID tags in Max Factor lipsticks. They had a 'wand' embedded in the store shelf, so they could 'see' when someone picked up a lipstick, and then they used a hidden video camera to see who it was and if the item was placed in the cart for purchase. They did not follow the customer around the store - no way for RFID to be tracked that way, nor did they continue the experiment past the one time, as far as I know.
RFID is also used to tag pets - but again, pets cannot be 'tracked' with RFID. The vets and animal shelters have wands that they can pass over the animal, it irradiates the RFID, which then begins to broadcast - generally the same info as you'd find on a dog tag, but less losable.
There is some concern that RFID chips implanted in animals have led to tumors under the skin. Unproven, but a concern, so it might not be appropriate use of that technology. Definitely not a good idea in people.
If you were to spend five minutes and some thought on a search for RFID readers you could learn how to build a reader and download software capable of extracting RFID info from many things including U.S. passports and most major credit cards -- most notably American Express credit cards.
Only the newest US passports have RFID in them - maybe. The American Express 'BLUE' card might also. Even then, it's encrypted. And even then, you have to be close enough to irradiate the device with enough RF to power it on - we're talking inches.
So please take off the tinfoil helmet. I'm the paranoid one around here - ask anyone. If I say this is Outer Limits balderdash, you can believe it.