25.08.2019-786 views -Tavern Graph
Fatwa On Multi-Level Marketing SchemesBy: The Permanent Committee in Saudi Arabia pertaining to Research and Fatwâ|| |
The kind of business based upon a pyramid scheme -- or " multi-level marketing" as it is often called - can be unlawful. The actual objective of such a business is always to obtain the commissions earned by introducing newbies to the business and not to earn income from the sale for the products themselves. At a time when the commissions may possibly reach into the tens of thousands of dollars, the earnings collected from the sale of the merchandise might only be a few hundred or so. Any person of sense who will be given a selection in such a plan will clearly go for the commission payment.
This is why companies of the kind, the moment promoting themselves, depend so heavily on showing the top volume of considerable commissions that they can be giving out. They attract clients by the promise of large earnings against the repayment of a comparatively modest first sum that may be often symbolized as the " selling price of the product". The product this business is marketing, however , is merely a pretext to obtain commissions and to profit from those commissions.
With this becoming the true nature of the business, the Islamic ruling into it is that it truly is unlawful. The reason why for it being unlawful are as follows.
1 . It entails the two kinds of against the law interest:
a. Ribâ al-fadl: the interest resulting from an exchange of like intended for like in an unequal method
b. Ribâ al-nasî'ah: the interest that is certainly paid rather than credit.
The customer is paying a smaller quantity at present to be able to obtain a much bigger sum of money another time in exchange for this. This is essentially an exchange of one amount of money for another amount of money of a increased value using a time postpone. This is illegal interest, mentioned previously clearly by sacred text messages and agreed upon by consensus.
The product that is sold by the firm is only a pretext to get the real exchange that is going on. It is not intended in associated with...