California man says Costco 'banned' his mom for using his dad's membership card: 'Given a warning before'

A personal finance content creator and influencer claims his mother has been banned from a Costco Wholesale location as stores crack down on non-member shoppers.

Angelo Castillo, of San Mateo, California, who is the founder of the personal finance coaching service Profit Plug, created a TikTok video about how his mother allegedly received the ban.

In the 42-second clip, Castillo explained that his father has the $60 Gold Star membership, which is Costco’s lowest membership tier, and it allows a total of two authorized users per membership card.

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"When I went to college, my dad made me a user instead of my mom," he said in his video, which has been viewed three million times.

Castillo said his mother was able to shop at Costco without issue for years. But roughly two months ago, according to Castillo, when she scanned the card at self-checkout, "employees rushed" to ask for her ID. 

"After confirming that it wasn’t her card, they later told her she can never go back to that location again," he said in his TikTok video.

In an emailed statement to FOX Business, a spokesperson for Costco Wholesale said, "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."

"Costco’s membership policy has not changed. We have always asked for membership cards at our registers at time of checkout," the statement goes on. 

"Our membership policy states that our membership cards are not transferable and since expanding our self-service checkout, we’ve noticed that non-member shoppers have been using membership cards that do not belong to them," the statement continued.

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Costco’s statement says the company doesn’t believe it’s fair for non-members to receive the same benefits and pricing as members who pay an annual fee to receive shopping perks.

"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's spokesperson elaborated. "If their membership card does not have a photo, then we ask for a photo ID." 

TikTok commenters were divided on the issue, with some thinking Costco should make it easier to add authorized users to a card — even for an additional fee — while others said the wholesaler should extend memberships to an entire household.

A few TikTok commenters said they have successfully ordered from Costco without a membership through Instacart, albeit with marked-up prices. 

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Castillo told FOX Business that he and his family aren’t mad at Costco for enforcing its policy, but he thinks the retailer could do more to make its membership terms clear.

He has not revealed the exact location that his mother was allegedly banned from.

"My husband travels for business frequently and we usually just need a once-a-month Costco run for all of our household essentials, food and toiletries," Castillo’s mother, who requested her name be omitted, said in a statement provided to FOX Business.

"We should be able to share this membership since we both benefit from these products and share bills," she added. "Sixty dollars every year is not a lot, but it will be for a lifetime."

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Castillo told FOX Business that Costco hasn’t tried to reach out to him after his video went viral, and he never expected the wholesaler to do so.

"I mean, after all, we were technically in the wrong," he said. "They always had this policy; they are just actually enforcing it now. And it's not like they just banned her on the spot the first time."

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"My mom was given a warning before, which I guess she forgot about," Castillo added. "We don't feel entitled at all or feel any animosity towards Costco, we love Costco."

Costco Wholesale Membership Costs by Type

Executive Membership: $120 plus perks

Business Membership: $60 plus perks

Gold Star Membership: $60

On Costco's frequently-asked-questions webpage titled, "What is the difference between each type of membership," it states that each Costco membership "includes a free Household Card." 

Another FAQ webpage specifies that Gold Star (which Castillo's dad allegedly has) and Executive memberships allow a maximum of two users.

This year, TikTok users had been sharing a hack that reportedly allows non-members of Costco to make purchases without signing up and paying for an annual membership fee, FOX Business reported in May.

Ticker	Security	Last	Change	Change %
COST	COSTCO WHOLESALE CORP.	928.08	-2.07	-0.22%

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It involves getting access to a Costco Shop Card, which is a members-only item that apparently functions the same way as a gift card.

The card reportedly provides entry and checkout at Costco Wholesale locations — whether you're a member or not.

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Despite apparent loopholes, Costco's policy still states that non-members cannot purchase products at any Costco location.