Humanity’s currently living out the movie Minority Report. Outraged Hong Kong citizens are chopping down lampposts with facial recognition scanners mounted on top of them. These scanners have been installed as a means of taking human data tracking to the next level.
Now, Costco shoppers are also outraged that their identities are being tracked as well. Granted, the implications are probably way less severe and Ray Bradbury-esque than the aforementioned social protest. But after the chain implemented its own ID scanners at the front of stores to make sure that the people shopping there are the actual cardholders themselves, a lot of customers have been up in arms.
Like TikToker @neiduuuh who penned a viral video about the store implementing these stringent membership checking protocols. Her clip hit a whopping 16.7 million views and highlighted a glaring criticism of the new ID checks, which she detailed in a text overlay.
A facial ID entry policy
The 6-second clip begins with a recording of the store’s entrance. There are several customers waiting to enter the establishment. A kiosk with the ID scanning apparatus, which is manned by an employee of the store, acts as a checkpoint. A small red sign dangles from the kiosk. Large white letters emblazon the sign that reads, “SCAN MEMBERSHIP HERE.”
An on-screen caption in the video details why the TikToker believes this new stringent policy is so problematic. She writes, “Costco’s new entry system. You can scan your card & your picture shows up in the screen if it’s not you, you don’t get it. No matter what! They don’t care if you’re shopping for your grandma. #Pathetic.”
In a caption for the post, @neiduuuh wrote that she was so upset over the new security measures that she’s opted to take her business elsewhere. She wrote, “Costco im leaving to Sams! #costco #sams.”
Viewers react to facial ID tech
She isn’t the first person to hop online and express disdain for Costco’s devout adherence to membership rules. One woman said she was prevented from shopping for her hospitalized mother due to its gate keeping card practices. Others said they’ve had problems convincing employees that they’re the person on their own Costco membership, needlessly delaying their shopping experience.
And while tons of folks are complaining about Costco’s membership policing, it seems to be working for the retailer. From 2014 to 2023, Costco membership grew from 76.4 million to 127.9 members, according to Statista. This has culminated in a ton of revenue for the company as well. In fact, Retail Brew states nearly 3/4ths of Costco’s profits come directly from membership fees.
Costco earns a ton of money on membership fees
In 2023 alone, Costco raked in a staggering “$4.3 billion in revenue in 2023, which is 72% of its total income of $6.3 billion.”
6 ABC discussed a recent annual membership fee hike at Costco. In its report, the news agency also highlighted just how profitable these fees have become for the retailer.
“Annual fees have been one of the biggest profit-generating areas for Costco, helping it offset expenses to keep its prices down. Last year, Costco earned $4.6 billion in revenue from membership fees, an 8% increase from 2022,” the report states.
Other viewers support the technology
Several folks who responded to @neiduuuh’s post offered varying opinions on the practice. Numerous TikTok users didn’t seem too sympathetic to the plight of folks who wanted to use other members’ cards to shop for bulk discount deals.
One user on the app wrote, “Yeah yeah wink wink shopping for your grandma. Just get your own membership, buddy.”
A number of folks said that the user agreement clearly details memberships aren’t transferable. “It says right there on the membership rules it must be the cardholder, it’s always been this way,” wrote one user.
Another TikTok user writes that they effectively side with Costco on this issue, seeing as the chain makes so much money from it’s memberships. “The reason Costco can offer such good deals on items in their store is because they make most of their money on the membership. If you just handing your car out like an invitation how will they profit,” they wrote.
Someone else wrote: “I’m with Costco on this one. Our local Costco store it’s always so full and I can barely get by but now so much space and quiet.”
@neiduuuh Costco im leaving to Sams! #costco #sams ♬ original sound – Neybabez
The Daily Dot has reached out to Costco and @neiduuuh via email for further comment.
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