# What is Grandfathered?

*Development · Last updated: November 10, 2026*

It is the situation where people who were in the system before new rules or price hikes came into effect retain their previous rights.

## Overview

In the technology world or subscription systems, it refers to the fact that users who joined before a rule change are not affected by it. Companies apply this exception to avoid losing loyal customers or to prevent sudden backlash. Old rights remain valid until a new contract is signed.

***Analogy:** It is similar to when a new zoning law is passed in an old neighborhood, and houses built previously are not demolished but allowed to remain as they are.*

## How it works

The system tags user accounts in the background, and when the new pricing or restriction engine runs, it excludes these tagged accounts from the rule.

## Where it is used

It is frequently seen in SaaS services regarding price increases, API usage quotas, and software license changes.

## Commonly confused with

It can be confused with a free trial or a discount coupon, but this situation is entirely about the continuation of previously acquired rights.

## Questions and answers

**Does this right remain valid forever?**

It usually lasts until there is a fundamental change in company policy or until you cancel your package.

**Why do companies do this?**

They choose to do so to avoid alienating their loyal user base that has been with them since day one and to avoid negative reactions.

## Related terms

- [SaaS](https://trescout.com/en/dictionary/saas/)
- [Free Tier](https://trescout.com/en/dictionary/free-tier/)
- [Paywall](https://trescout.com/en/dictionary/paywall/)

This explanation was written in plain language for TreScout with AI and **machine-translated** from the Turkish original · the Turkish version prevails. If something looks wrong or missing, write to [hello@trescout.com](mailto:hello@trescout.com). [Read in Turkish →](https://trescout.com/dictionary/grandfathered/)

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Source: TreScout Dictionary · https://trescout.com/en/dictionary/grandfathered/