Navigating Ethics: Examining Whether Network Marketing Aligns with Halal Principles – This fatwa
Network marketing is considered halal if:
The commodities that are traded or sold are legal
The structure of the commission should be revealed in complete transparency.
The general contract requirements are adhered to
In answer to your query, Professor. Prof. Dr. Monzer Kahf, Professor of Islamic Finance and Economics at Qatar Faculty of Islamic Studies, says:
Any business that eats the money of others without a legitimate reason is rejected. Almighty Allah {says, You are those who believe! Please do not squander your wealth between yourself in lust unless it is a trade made by mutual consent. Kill each other in no way. Lo! Allah is ever merciful to you. } (An-Nisaa’ 4:29)
Islam also lays out that the transaction subject should not be something that is considered to be prohibited. It must also be free from any deceit or fraud. This is in line with Islam’s concern for safeguarding the rights of individuals.
Paramedic networking marketing is permitted subject to the following conditions:
The traded or sold products are legal, like selling genuine goods. Therefore, selling fake or prohibited products makes it illegal.
The commission structure should be made clear in full disclosure to any new member or customer when invited. Ensure that they are aware when they sign up that the person inviting them holds a stake in the invitation.
The general contract requirements are met, including the ability to contract, a complete description of the product, laundrymen and delivery process, and other items that have special requirements, such as gold that demands delivery and full payment at the date of the contract, these additional conditions must be met.
If all three of these conditions are met in the company you inquire about its operations, then they are allowed.
Allah Almighty knows best.
Editor’s Note: This fatwa comes from Ask the Scholar’s archive and was initially published earlier this year.
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