Topline
Costco is following the footsteps of other membership-based businesses and cracking down on membership sharing among its customers, the wholesale company announced Tuesday, according to multiple reports.
Key Facts
The company has reportedly grappled with an increase in non-Costco members using other Costco members’ cards to shop at the store.
Employees will begin reviewing membership cards at the recently expanded self-checkout, where the abuse has been particularly egregious, the company reportedly said.
If a members’ card does not have a photo, the company said it will ask customers for a photo ID to verify their identity.
Costco members pay either $60 to $120 for an annual membership depending on which tier and benefits they select.
Big Number
124.7 million. That’s how many cardholders Costco has worldwide, across 69.1 million households, according to data from the company. Most of its warehouses are located in the United States.
Key Background
Costco is not the first company to begin enforcing membership requirements of its customers. For months, Netflix has made headlines as the company teased a potential password crackdown for users within the U.S. Last month, the planned enforcement became a reality, as. Netflix users can no longer share accounts with others who don’t live with them. Netflix told U.S. users an “account is for use by one household,” urging subscribers to sign out their accounts on devices that “shouldn’t” have access to the user’s account, and set a primary location for the account.
What To Watch For
After Netflix announced its new membership policy, subscriptions hit a record high. Netflix added 100,000 new accounts on both May 26 and May 27, just days after the crackdown went into effect, data from Antenna found. It’s unclear if Costco might see a similar boost.
