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The luggage tag itself wont track your luggage, the Apple AirTag you insert into it will - that's sold separately. AirTags work by using Bluetooth to communicate with nearby Apple devices in the Find My network. When your AirTag is out of Bluetooth range from your own device, it can anonymously and securely ping nearby Apple devices to report its location back to you through the Find My app, that works even in remote locations where your luggage might end up.
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