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雷竞技手机版企业家精神缺失症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

Business News

Daymond John Slams 'Shark Tank' Contestants With Restraining Order: 'It Is Unfortunate That It Has Come to This'

Bubba's Q boneless ribs first appeared on Season 5 of the hit ABC show.

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

Report: Vanna White Hasn't Received a Pay Raise in 18 Years, Will Walk if Not Offered $4.5 Million More for 'Wheel of Fortune'

The news follows longtime host Pat Sajak's decision to retire after this season.

Legal

Ghislaine Maxwell Is Called 'Prison Karen' for Filing 400 Complaints Behind Bars

According to a British newspaper, Jeffrey Epstein's sex trafficker is causing problems for the guards and inmates at her Florida prison.

Career

The Top 12 Best Jobs and Careers for Introverts

Want a career that leaves you fulfilled and doesn't take up too much social energy? Check out this breakdown of the best jobs for introverts.

Growing a Business

If You Want to Be a Millionaire, Start Thinking Like One

Far too often, we're led to believe at a young age that there's a limit to how much we can earn … and it's high time to shake that idea.