Cracking Down on Membership Card Sharing: Costco Joins Forces with Netflix and More

Costco Cracks Down on Membership Card Sharing, Following Netflix's Lead

Costco has joined the ranks of companies taking action against customers who share their memberships. In an effort to prevent non-members from benefitting from the same privileges and pricing as members, Costco employees will be checking IDs more frequently. The crackdown comes as self-checkout becomes more popular, prompting employees to request identification at those registers as well. While the move may be unpopular with some shoppers, similar action by Netflix to curb password sharing has resulted in a surge of new user signups for the streaming service. Costco, known for its bulk buying appeal, charges an annual membership fee of $60. Despite speculation that the fee would increase, the company has so far resisted but hinted that it may do so in the future. With a worldwide membership renewal rate of 92.6% and over 123 million cardholders, Costco's decision to crack down on membership card sharing aims to preserve the benefits and privileges for its loyal members.

Preserving Fairness and Security: Costco's Efforts to Combat Membership Card Sharing


Costco has followed in the footsteps of Netflix by cracking down on membership card sharing. The retailer aims to prevent non-members from taking advantage of the same benefits and pricing as paying members. To achieve this, Costco employees will check shoppers' IDs more frequently, not only at the regular checkout counters but also at the self-checkout stations. The decision comes as self-checkout becomes increasingly popular among shoppers.

The motivation behind this crackdown stems from the observation that non-members have been using membership cards that do not belong to them, likely in an attempt to access Costco's discounted prices and exclusive perks. Costco expressed its dissatisfaction with this practice, stating that they do not believe it is fair for non-members to enjoy the same privileges as their paying members.

Costco's move to tighten security and prevent membership card sharing also aligns with the rising concerns over grocery costs and the appeal of bulk buying. The store charges a $60 annual membership fee, which has remained unchanged since 2017. Despite speculation about a potential fee increase, the company has resisted this so far. However, in March, Costco's CFO Richard Galanti hinted that an increase in membership fees is a matter of "when, not if."

Costco's decision to crack down on membership card sharing comes after Netflix implemented a similar ban on password sharing.
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Costco's decision to crack down on membership card sharing reflects the growing trend among companies like Netflix to protect the privileges and benefits of paying customers. As self-checkout becomes more prevalent, Costco aims to ensure that only valid members enjoy the perks of membership by increasing ID checks at both regular and self-checkout counters. This move not only addresses the issue of non-members using membership cards that do not belong to them but also tackles concerns over grocery costs and the appeal of bulk buying.

With a worldwide membership renewal rate of 92.6% and over 123 million cardholders, Costco's dedication to preserving the benefits for its loyal members is evident. Despite the speculation surrounding a potential increase in the $60 annual membership fee, the company has resisted such changes thus far. However, Costco's openness to a fee adjustment in the future suggests that maintaining the value of membership remains a priority.

By following Netflix's lead in cracking down on sharing practices, Costco aligns itself with the intention of protecting the integrity of its membership system and catering primarily to its paying members. As more companies address sharing-related concerns, it is clear that safeguarding the benefits and privileges of membership is a priority in ensuring customer satisfaction and maintaining a balanced ecosystem for both the business and its loyal members.