The Student Discount Crackdown Is Coming

Promotion Pushback

Student discounts are great. They can help money-strapped students save on everything from coffees, to movie tickets, or laptops.

But as companies increasingly crack down on policies that could potentially be violated and cost their businesses lots of money, student discounts are under scrutiny.

No More Honor System

In the past, taking advantage of these discounts could be as simple as flashing a student ID or signing up with a school email address. But this makes it easier for people to hang onto those discounts long after graduation.

Now some companies are implementing status-verification checks that will make it harder for non-students to take advantage of special deals. Spotify (SPOT), for example, has partnered with a company called SheerID, which leverages a whopping 200,000 data sources to digitally verify that students are who they say they are, the Wall Street Journal reports.

Digitization of Data

Companies are becoming more savvy with customer segmentation and personalized pricing, giving them more control over who has access to special deals — and who doesn’t.

Netflix’s (NFLX) password-sharing crackdown used location data to ensure accounts aren’t shared outside of households, is one example. And while it’s a nuisance for consumers who are looking for a deal after years of rising prices, companies are trying to protect their bottom lines. The end result, however, could be that consumers cut back on purchases that previously cost them less.

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