Costco is cracking down on its membership rules.
The retail giant said it is noticing abuse of card sharing since it expanded self-checkout to more of its stores. In response, Costco is reportedly doing spot checks at the self-checkout counters in hopes of weeding out non-members.
Costco requires all of its nearly 70 million annual membership shoppers to showcase their ID cards upon entering the store and at check out. The ID has an image of the cardholder on it.
Costco's basic "gold star" membership, which costs $60 per year, is good for up to two people per household, while the "executive" membership costs $120 annually and comes with additional perks.
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The company's business model operates in such that the bulk of its earnings come from membership fees -- covering company expenses and keeping prices low.
"Costco is able to keep our prices as low as possible because our membership fees help offset our operational expenses," Costco said in a statement. "We don't feel it's right that nonmembers receive the same benefits and pricing as our members."
