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Erm, no. Most definitely not.
http://www.cyclingweekly.co.uk/news/why-is-cycle-alert-causing-alarm-23731
Note that there's another company, Cycle Safety Shield, which designed a similar system initially and took the LCC's concerns on board (dropping their product and designing a new one), whereas to the best of my knowledge Cycle Alert haven't (see their reply in the comments to the second link, which clearly shows that they haven't taken the point). (This is all some time ago, so perhaps something new has happened in the meantime.)
tl;dr, Cycle Alert would put the onus on riders by requiring them to have these tags on their bike/their person. This would never work.
http://www.cyclealert.com/