Costco
- The policy allows AI training; it does not describe an opt-out.
- Your data is used for personalized ads, including by third-party ad companies.
- Data is shared with partners and affiliates; you can opt out.
- Staff may review your content; the policy does not describe an opt-out.
Costco collects a lot, uses it for ads and AI, sells/shares with an opt-out, and limits lawsuits to $100.
Agent Trust Hub uses AI and may make mistakes. Review reports and confirm their contents before relying on them.
- Uses your content for AI training with no opt-out
Collected
Account, purchases, device IDs, photos, face scans, plates, location, and broker data.
Read the exact line
Privacy policy
“Precise geolocation when you choose to provide our Online Services with access to this information, connect to the Wi-Fi in our warehouse, or otherwise choose to connect to a location-based feature we offer.”
Training
They use it to run Costco, target ads, and train AI and large language models.
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Privacy policy
“To improve our products, develop, test, and enhance our systems, processes, products or features, and conduct research, including training Artificial Intelligence tools and Large Language Models used to support our business operations.”
Sharing
Advertisers, affiliates, Citi, suppliers, and partners can get your information; you can opt out of sale.
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Privacy policy
“We disclose information to other companies that conduct marketing and advertising services to promote our Services.”
Kept
Member data is kept while you are a member plus a later period; exact times vary.
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Privacy policy
“Identifiers that are associated with a member account will be retained for the length of time for which you are a member, plus a reasonable period thereafter”
Controls
You can opt out of targeted ads and sale, and request access, correction, or deletion.
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Privacy policy
“You or your authorized agent may submit a request to opt out of targeted advertising, development of marketing inferences or profiles, and the sale of personal information by visiting our Your Privacy Choices webpage.”
Fine print
Site is as-is, capped at $100, they can close access without notice, prices can change.
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Terms of service
“IN NO EVENT SHALL THE OF COSTCO [WHETHER IN CONTRACT, , TORT (INCLUDING BUT NOT LIMITED TO NEGLIGENCE), PRODUCT , STRICT OR OTHER THEORY] ARISING OUT OF OR RELATING TO COSTCO’S OPERATION OF THE SITES EXCEED $100.”
Expand “Read the exact line” to see the source alongside the explanation.
What you can turn off
The controls and opt-outs their own documents describe, and where they say to find them.
Opt out of sale, sharing, and targeted ads
Your Privacy Choices webpage (and Cookie Settings for trackers)
Request access, correction, or deletion
Data Rights Request form or call 1-800-605-3364
Turn off promotional email
Account menu → Preferences on Costco.com, or unsubscribe link
Turn off precise location
Device settings for the Costco Online Services / app
If a switch is not where they say, the deletion request above still applies.
Line by line
The lines that matter most, worst first.
They say they can use personal information to train AI systems. The notice does not give a way to turn that off.
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Privacy policy
“including training Artificial Intelligence tools and Large Language Models used to support our business operations.”
For example, a chat with the virtual assistant could be used to train their AI tools.
They can scan your face and compare it to your ID when you join, enter, or buy things like alcohol.
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Privacy policy
“Biometrics when you establish or access your membership, or purchase restricted products such as alcohol, facial images and telemetry may be captured and compared to images of your identification documents”
For example, a camera may capture your face at checkout to match your driver’s license photo.
They buy or receive extra information about you from data brokers, not just what you give them.
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Privacy policy
“Commercial data brokers/sources. We receive information about your interests, as well as information that assists us in preventing fraud or other illegal activities.”
For example, a broker might tell Costco what kinds of products you are likely to want.
Anything you submit (ideas, comments, and similar) can be used by Costco forever, including by others they license.
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Terms of service
“you further hereby grant (or warrant that the owner of the Submissions has granted) to us and our assigns a , , , unrestricted, non-exclusive, world-wide, assignable, , right and license”
For example, a product idea you email them could be used in marketing without paying you.
If someone sues over what you posted or how you used the site, you may have to pay Costco’s legal bills.
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Terms of service
“You agree to and Costco and its parents, employees, agents and representatives from any third-party claim, action, demand, loss, or damages (including attorneys' fees)”
For example, if a review you posted leads to a lawsuit, they can ask you to cover their costs.
They can cut off your website access at any time without warning if they think you broke the rules.
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Terms of service
“Costco reserves the right, without notice and in its sole discretion, to terminate your license to use the Sites, and to block or prevent future access to and use of the Sites”
For example, they could lock you out of Costco.com without emailing you first.
Chats are collected and monitored by Costco and vendors. There is no separate opt-out described for that monitoring.
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Privacy policy
“When you use the virtual assistant or chat features on our Services, you provide consent for us and our service providers to collect, monitor, and process the content of your chat”
For example, a human or vendor system could read a chat you had about an order.
California law treats some of their ad sharing as a sale or share. They offer an opt-out page.
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Privacy policy
“We sell or share your information as follows:”
For example, identifiers and purchase info can go to ad and analytics companies unless you opt out.
You can tell them not to use your data for targeted ads, marketing profiles, or sale.
Read the exact line
Privacy policy
“You or your authorized agent may submit a request to opt out of targeted advertising, development of marketing inferences or profiles, and the sale of personal information by visiting our Your Privacy Choices webpage.”
For example, you can fill out Your Privacy Choices so they stop sharing you with ad networks.
If the website causes you harm, they say they will not pay more than $100 in most cases.
Read the exact line
Terms of service
“IN NO EVENT SHALL THE OF COSTCO [WHETHER IN CONTRACT, , TORT (INCLUDING BUT NOT LIMITED TO NEGLIGENCE), PRODUCT , STRICT OR OTHER THEORY] ARISING OUT OF OR RELATING TO COSTCO’S OPERATION OF THE SITES EXCEED $100.”
For example, if a site error costs you more than $100, they still cap what they will pay at $100.
They say they do not knowingly collect data from kids under 16, except when an adult gives it for a service.
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Privacy policy
“We do not collect personal information knowingly from individuals under 16.”
For example, a parent booking travel for a child can provide the child’s details.
Words to know
Legal words from the lines above, in plain English.
- precise geolocation
- Your exact position, usually from GPS, often accurate to within a few metres. For example, an app can tell not just your city but which building you are in right now.
- retention
- How long a company keeps your data before deleting it. For example, a policy might keep your messages for 30 days after you delete them, or for as long as it likes.
- opt out
- Something is on by default and stays on until you find the setting and turn it off. For example, your chats may be used for training unless you go into settings and switch it off.
- targeted advertising
- Ads chosen for you based on what you have done across other apps and websites, not just this one. For example, you look at shoes in one app and see shoe ads in a totally different app the next day.
- profiling
- Building a picture of who you are, what you like and what you might do next from your data. For example, an app may guess your income, health or politics from what you watch and tap.
- sell or share
- Under California law, selling means passing your data to others for money or other value; sharing means passing it on for targeted ads. For example, letting an ad network use your browsing history in return for ad space counts as a sale.
- personal data
- Any information that is about you or can be linked to you, from your name to your phone's ID. For example, your email, your IP address and the list of apps on your phone are all personal data.
- limitation of liability
- A cap on what the company will ever pay you if something goes wrong, often only what you paid in the last year. For example, if a leak of your data costs you thousands, the most you may get back is a month's subscription fee.
- warranty
- A promise that a product will work as described; most apps say they make no such promise at all. For example, if a paid feature never works on your phone, a no-warranty clause says that is your problem.
- biometric
- Measurements of your body that identify you, like your face, fingerprint or voice. For example, a selfie used to unlock the app or a voice recording matched to you.
- data broker
- A company that buys, collects and resells information about people, usually without ever meeting them. For example, your phone number and shopping habits can be sold as part of a list to a company you never heard of.
- perpetual
- Lasting forever, with no end date. For example, a perpetual licence means the company can keep using your video years after you leave.
How we got here · grade F · score 28/100 · 15 of 15 policy answers backed by a verified quote · 0 not stated
What does the app collect beyond what it needs to work?
They collect far more than account and cart data: precise location, face photos, license plates, device IDs, browsing, and data from brokers.
Does it record your voice, face or body, and what happens to that?
They capture facial images and biometrics for membership and restricted purchases, and keep some of that with your account for a period of time.
Are your chats and uploads used to train AI models, and is that off by default?
They say they use personal information to train AI and large language models. The notice does not describe an opt-out for that use.
Can employees or contractors read your conversations, and when?
Chat and virtual-assistant content is collected, monitored, and processed by Costco and service providers, with no opt-out described for that monitoring.
Are you profiled or tracked for advertising?
They and advertising vendors use cookies and similar trackers across sites, and they disclose data to ad and analytics companies. You can opt out.
Do they sell or share your data, and can you opt out?
They say they sell or share identifiers, commercial info, and online activity with advertisers and others, and you can opt out on Your Privacy Choices.
What rights do they take over what you type and what the AI makes?
Submissions you send get a perpetual, irrevocable, worldwide, sublicensable license for any purpose. Photo storage has a narrower license.
How long do they keep your data after you delete it, and can you delete it in the app?
You delete by submitting a Data Rights Request or calling. Member data is kept for the membership plus a later period they decide.
Does it build a lasting memory or profile of you, and can you see, edit or turn it off?
They create inferences about your likely preferences and marketing profiles. You can opt out of targeted ads and those profiles, but viewing or editing a memory is not described.
Do they commit to basic security, and have they leaked data?
They say they take reasonable steps to protect data but do not guarantee security. No independent audit is described.
Is there a real age gate, and are teens protected?
The site is for people 13 and up; under 18 needs a parent. Privacy says they do not knowingly collect from under 16. There is no strong age-check described.
Will they tell you when the rules change, and is the policy specific?
The privacy notice is dated. Material changes get notice only as required by law. Site terms change when posted, and continued use means you accept.
Can they close your account without warning, and can you get your data out first?
They can end your license to use the Sites without notice if they decide you violated the terms.
If something goes wrong, who pays?
The site is as-is, liability is capped at $100, and you must indemnify Costco for claims tied to your conduct or submissions.
Do subscriptions renew on their own, and can you get a refund?
They can change prices and offers on the Sites at any time without notice, and they can cancel orders if the price was wrong.
The privacy policy is 7,011 words at a college graduate level (Flesch reading ease 30); the terms are 5,897 words at a college level.
