undeuxpaw wrote:

Did they ever specify that the family members had to be in the same house? There are plenty of families who have children away in university who still use the family account, it doesn't seem realistic to make them pay more.

I believe the correct choice of words might be "IP LOCKED" meaning exactly that, that a membership for one person would be purchased, but it would no longer be valid outside of their home internet range. 
More money would have to be paid to allow use outside of the home.