In a move to address the increasing amount of card-sharing, Costco is cracking down on non-members who borrow membership cards to take advantage of savings. The warehouse club has observed this behavior since expanding its use of self-checkout lanes. According to NBC News, customers at self-checkout registers will now be asked to provide a membership card with a photo or a photo ID if the membership card does not have one. This change will bring self-checkout lanes in line with regular checkout lanes.
A statement from the company cited by USA Today explains the rationale behind this crackdown: “We don’t feel it’s right that non-members receive the same benefits and pricing as our members. 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.” Costco primarily relies on membership fees for profit, with basic level memberships costing $60 per year and executive memberships costing $120 per year, offering additional perks. Some Twitter users have expressed their displeasure with this decision, comparing it to the password sharing controversy with Netflix. (Read more Costco stories.)
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