Costco starts cracking down on membership sharing

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Costco starts cracking down on membership sharing
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The wholesale store has seen an uptick of nonmembers shopping using memberships that don't belong to them, a company spokesperson told CBS News.

First Netflix, now another brand is cracking down on membership sharing: Costco. The wholesale store, which requires shoppers to pay for membership, has seen an uptick of nonmembers using memberships that don't belong to them to shop at the store, a spokesperson told CBS News.

"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 said. The company recently expanded its self-checkout and noticed nonmembers were taking advantage there."We don't feel it's right that nonmembers receive the same benefits and pricing as our members," the spokesperson said."As we already ask for the membership card at checkout, we are now asking to see their membership card with their photo at our self-service checkout registers. If their membership card does not have a photo, then we ask for a photo ID.

The company's membership policy hasn't changed, the spokesperson said, adding that memberships have never been transferable and they have always asked customers to present their cards at checkout. The company says it has 119 million customers. The company's gold star memberships cost $60 per year and executive memberships, which come with added perks, cost $120. Each includes two cards for people living at the same address.

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