Radio Frequency Identification (RFID) tags are adhered to the underside of sheet labels, to form assemblies which can be applied to articles. Pressure sensitive adhesive labels are removed from a liner which then runs on a loop, back to nip rollers, where the labels are re-attached to the liner. The labels are re-attached at a downstream point on the liner, in combination with tags, to form the assemblies. The assemblies on the moving assembly web are read by optical and radio frequency systems; and, defective assemblies are removed by a diverter which strips the selected defective assembly from the web and carries it away on a defect liner. RFID tags are adhered to linerless label web at spaced apart locations, to form assemblies which can be cut from the web at the point of application.