Multilevel Marketing

Author: 
Adil Salahi, Arab News
Publication Date: 
Mon, 2005-02-28 03:00

Q. Could you please explain whether multilevel marketing is permissible or not. I am aware that pyramid marketing in which no goods are purchased or sold, but simply pays some money to be a link in the pyramid are not lawful in Islam. What I would like to know specifically is whether in a case where “A” buys, say, an antique item then sells it to “B” and “C”, and then each of these sells to two different persons, then the first man, A, gets a share of the profits. Is this permissible?

D. Khaleel

A. I am not sure what multilevel marketing means in practical terms. There are so many new forms of business deals these days that a person who is not engaged in business may not know.

You will appreciate that anyone giving a verdict on something must be fully aware of the working of the transaction and what those who are involved in it do, the role of each, and what they get out of it. What we can say with certainty is that a business deal that takes the form of one person buying something from another, while in fact no goods are exchanged, is not acceptable from the Islamic point of view. The Prophet (peace be upon him) insisted on trading being transparent and involving no deception or unfairness.

The formula cited by the reader is rather confusing. The first person, A, is said to buy an item, then he sells it to two persons, and each of them sells it in turn to two others. The question that immediately springs to mind is, when the first person is selling the same item to two people, is he making one deal or two? In other words, is he selling to two people as partners, each of whom will own half of the merchandise, or is he selling the same item twice to two different people? If it is one sale, then this part is all right.

But it does not seem so, because each of the two buyers is selling again to two more. In other words, the same merchandise is supposed to be owned by multiple owners, all at the same time. How can this be done is difficult to understand.

There is a clear element of fraud in this case, even though each of the people involved knows exactly what he is getting into. As such it cannot be permissible.

Staying Away From Family

Q. If a married man comes here for work and stays two years before going back home, does he fail in his marital responsibilities?

P.S. Basha

A. One may be absent from home in connection with his work for a period of four months, without having to have his wife’s agreement to his absence, provided he makes arrangements for her and their children to be well looked after. If he needs to be away from home for longer periods, this must be done with his wife’s consent. If she does not agree to his prolonged absence, she is entitled to seek divorce.

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