You'd expect there to be metadata including how many labels on the roll, so it might break after N uses. I'd imagine there would be other ways to spoof it but still, this is shoddy practice.|
edit: Yes "Dymo touts the benefits of the chipped label paper in its sales literature, including auto-detection and remaining label counts."
As of now that increases the size, complexity, and cost of the implementation. A dumb RFID chip that returns an ID is a lot simpler and smaller package size than one that handles crypto.
edit: Yes "Dymo touts the benefits of the chipped label paper in its sales literature, including auto-detection and remaining label counts."