Monday, July 22, 2024
No menu items!

Multi-level marketing

Fatwaa ID: 163

Asslamualikum, I want to ask a question about a business type, all the detail of that type of business can be seen in image given, the image can be accessed from the links:

Whats App Image 2017 09 27 at 10 13 29 PM


(image attached below)


In the Name of Allaah, the Most Gracious, the Most Merciful.

As-salāmu ‘alaykum wa-rahmatullāhi wa-barakātuh.

The business outline detailed above is that of the pyramid scheme in the multi-level marketing network. Pyramid schemes in most cases are based on impermissible elements such as gambling, interest, ambiguity, deception and conditional sales. Hence, the transaction itself will be based on the contract. You have not provided enough details on the contract itself. You may send us the contract at (ref. Muajul) and we will analyze further.

In principle, if a condition is laid out that the buyer of the commodity must find more customers, then this transaction is impermissible. If however this condition is not laid out, then it will be permissible to enter into such transactions, provided that an asset, which must be identified and halaal, is being sold and not only a membership to the network. Moreover, if the commodity is sold at an exorbitant price, the purpose being to enter the network, then too the transaction will be impermissible[1].

And Allaah Ta’aala Knows Best.

Muajul I. Chowdhury
Student, Darul Iftaa
New York, USA

Checked and Approved by,
Mufti Ebrahim Desai.

وصل اللهم وسلم وبارك على سيدنا محمد وعلى ءاله وصحبه أجمعين

[1] فقه البيوع (2/ 812)

إن كان بيع المنتج مشروطا بأن يدخل المشترى في شبكة التسويق، فهذا البيع فاسد، لاشتراط ما لا بقتضيه العقد.


Darul Iftaa New York answers questions on issues pertaining to Shari’ah. These questions and answers are placed for public view on for educational purposes. The rulings given here are based on the questions posed and should be read in conjunction with the questions. Many answers are unique to a particular scenario and cannot be taken as a basis to establish a ruling in another situation. 

Darul Iftaa New York bears no responsibility with regard to its answers being used out of their intended contexts, nor with regard to any loss or damage that may be caused by acting on its answers or not doing so.

References and links to other websites should not be taken as an endorsement of all contents of those websites. 

Answers may not be used as evidence in any court of law without prior written consent of Darul Iftaa New York.