If we sign up to the Deezer family package how do they know if all the people signed up to it actually live in the same house. I thought it would be like Netflix where you can use the same password and use it in different houses (whether you’re supposed to or not, I’m not sure?).
The only reason I’m asking is that it allows up to six people to sign in and there’s only two of us.

They don’t. I share my account with my wider family who are elsewhere.