It's not a "Recognition" tag, it's a name tag for identification purposes. And, hopefully , when your bag gets lost on AC or a Star alliance partner, they can easily enter your Aeroplan number to easily find your personal info so they can get your bag back to you as quickly as possible.
I have 10 suitcase and some have the old tags on them as I.d
The luggage tags do not have your Aeroplan number on them.