Grocery retailer Costco (COST) is cracking down on people who share membership cards to access its warehouse clubs in the U.S. and Canada.
Costco said it has always asked shoppers for their membership cards at the cash registers when they checkout. Now, the company also plans to request cards with a photo at self-checkout registers, and to view photo identification if a shopper’s membership card does not have a picture.
The company, which requires people to pay an annual fee of $60 or $120 to shop at its locations, said that it has noticed more card sharing since it expanded self-checkout.
The bulk of Costco’s earnings come from its membership fees, which help cover expenses and keep its prices low compared to other retailers.
Costco currently charges $60 for a basic annual membership and $120 a year for its top executive membership.
The crackdown on membership card sharing comes as Costco reports mixed earnings. The company most recently announced that its net sales rose an annualized 2% to $52.6 billion U.S. during the quarter ended on May 7 of this year.
Costco executives have said that consumers are still spending on food, but that demand has slowed for pricier merchandise such as furniture and electronics amid high inflation.
The crackdown on membership card sharing follows a similar move taken by Netflix (NFLX), which is cracking down on people who share passwords to access its streaming service.
Costco’s stock has gained 13% in the last year to trade at $530.33 U.S. per share.
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