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Costco cracks down on unauthorized membership sharing

Costco is cracking down on unauthorized membership sharing by increasing its photo ID enforcement at self checkout lanes. File photo by Kevin Dietsch/UPI
Costco is cracking down on unauthorized membership sharing by increasing its photo ID enforcement at self checkout lanes. File photo by Kevin Dietsch/UPI | License Photo

June 27 (UPI) -- Costco is cracking down on shoppers who use other people's membership cards to buy bulk-sized drinks, food and other items.

The membership-based warehouse retailer said Tuesday it has increased photo ID enforcement for shoppers who choose to use the self-checkout option, after noticing an uptick in unauthorized card-sharing.

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"We don't feel it's right that non-members receive the same benefits and pricing as our members," the company said in a statement. "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."

Costco charges $60 for annual memberships and $120 each year for its Executive Membership. Costco says it relies on its membership fees for much of its earnings, in addition to keeping prices low.

"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," it said.

Costco has seen an uptick in sales for its food items, due to rising inflation, but slower demand for pricier merchandise, including electronics and furniture.

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"It rains on all of us during these tougher times, particularly with bigger ticket, discretionary items," Costco's chief financial officer, Richard Galanti, said on an earnings call in December.

Costco's crackdown on membership sharing comes after Netflix announced earlier this year that it would no longer allow password sharing between households.

Costco shares have increased nearly 16% so far this year. Its stock closed up Tuesday at $530.33.

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