Costco Cracks Down on Membership Sharing: 'We Don't Feel It's Right'The wholesaler is now asking for a photo ID with the membership card at checkout.

ByMadeline Garfinkle

Pamela Brick | Shutterstock
Costco is aiming to reduce the practice of sharing memberships with nonmembers.

You may need to show photo identification on your nextCostcotrip, even if alcohol isn't in your cart.

The wholesale retailer has begun cracking down on the influx of membership sharing, particularly at Costco's self-checkout lanes, by asking for customers' membership cards along with photo ID. While Costco has always asked for membership cards at checkout, the request for additional identification is new, perThe Dallas Morning News, which was the first to report the news.

"We don't feel it's right that nonmembers receive the same benefits and pricing as our members," a spokesperson for Costco told the outlet.

The company says sharing membership cards threatens a key element of Costco's business model: low prices.

Related:Costco CFO Implies Future Membership Fee Increase

"Costco is able to keep our prices as low as possible because our membership fees help offset our operational expenses, making our membership fee and structure important to us," the spokesperson added.

Beyond the additional request for ID, Costco memberships are not changing.

CostcoGold Starmemberships cost $60 annually, and Executive memberships, which come with added rewards and perks, cost $120 — both memberships come with cards for two individuals with the same home address. Business memberships can add additional members to an account for $60 each.

The retailer isn't the first company to tighten restrictions on shared accounts. Last year, Netflixannouncedit would be cracking down on password sharing, citing the practice as detrimental to its bottom line. The new rule, which charges subscribers $7.99 a month for additional accounts shared outside of a user's household, went into effect inMay.

It's unclear how Costco's crackdown will affect existing or future memberships, but just four days after Netflix's new rule took hold,new subscribersrose by over 100,000.

Related:Blockbuster Gets Cheeky With Netflix Over Password Sharing Fee

Wavy Line
Madeline Garfinkle

Entrepreneur Staff

News Writer

Madeline Garfinkle is a News Writer at Entrepreneur.com. She is a graduate from Syracuse University, and received an MFA from Columbia University.

Editor's Pick

We're Now Finding Out TheDamaging Results of The Mandated Return to Office— And It's Worse Than We Thought.
He 'Grew Up in Bars' and Was Drinking By Age 10 — But Entrepreneurs Changed His Life. Now a Business Owner Himself,He's Paying It Forward.
LinkedIn Changed Its Algorithms — Here's How YourPosts Will Get More Attention Now
'Focus Is Just as Important as Passion': How to Avoid狗万官方企业家精神缺失症in Franchising
Lock
Kevin O'Leary Recommends This6-Step Strategyfor Making Money on Social Media
Lock
ThisMindset Shift Changed My Life— And Gave Me the Courage to Leave My Well-Paid Full-Time Job.

Related Topics

Growing a Business

This 25-Year-Old Has 5 Restaurants, $6 Million in Revenue and a Simple Slogan: 'Don't Be a Dick'

Here's how François Reihani started Dallas-based La La Land Kind Cafe, which hires teenagers and young adults as they exit the foster system and helps them build careers.

Business News

Costco Cracks Down on Membership Sharing: 'We Don't Feel It's Right'

The wholesaler is now asking for a photo ID with the membership card at checkout.

Marketing

46% of All Google Searches Have to Do With Location, One Report Says — and Purchases Often Follow. Here's How to Boost Your Business' Visibility Locally.

Explore proven techniques and actionable tips to help you enhance your business visibility in your community and stay ahead of the competition.

Growing a Business

We're Now Finding Out The Damaging Results of The Mandated Return to Office — And It's Worse Than We Thought.

Companies knew the mandated return to the office would cause some attrition, however, they were not prepared for the serious problems that would present.

Business News

Save Over $1,000 Off an eBike for a Limited Time

Get an eBike for less than $1,000 plus free shipping.