Is dealing with a network marketing company, in which products are purchased, then marketed and sold, with the possibility of forming a team, and the marketer receiving a percentage of their team members' sales, permissible or forbidden?
This company is one of the pyramid or network marketing companies, which are based on risk and (uncertainty/deception), as it only grows through the existence of those who lose for the benefit of those who win. Losses for the latter layers of members are inevitable, and without them, the exorbitant commissions for the upper layers cannot be achieved. This means that the majority loses so that the minority can win, and their earning without right is a consumption of wealth unjustly, even if the company's product is useful and its price is suitable, as long as the motive for subscribing is to obtain the marketing revenues themselves.
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
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- Original fatwa ID
- 160883
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- Summary from Ftawy's records, reviewed by El Fatwa's sharia committee.
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- Read the full answer on Ftawy