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Costco (COST) has recently faced challenges with members sharing their memberships, prompting the company to implement measures to address this issue. Costco members pay either $60 for a basic Gold membership or $120 for an Executive membership, which offers 2% cash back up to $1,000. While members can bring guests into the store, only the cardholder can make purchases and check out. However, historically, anyone could enter a Costco, and nonmembers were even allowed to dine at the food court.
- In response to increased membership sharing, Costco has begun requiring members to show their cards for purchases at its food courts and is testing new technology to prevent membership sharing. This pilot program involves using scanners to verify members' identities upon entry, streamlining the process and reducing potential conflicts at checkout.
Why it matters
While the outcome of the pilot remains uncertain, Costco aims to maintain fair access to benefits and pricing for its members.
