it means you were a member but not anymore
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Your Inventory in club penguin is that you have to first click on your penguin (or the star on your cp toolbar) and then click on the arrows on the right hand side of your player card.
It's the star icon on the toolbar
In order to be a star member on Club Penguin, you have to buy a membership.
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It means that the person purchased the "Premier Club" package.