Is it permissible to work as an agent for a company that requires purchasing a product of a certain value, while making a profit from selling products or inviting new agents, such that profits continue from agents below you even if the chain is not hierarchical?
It is not permissible to participate in network or pyramid marketing if the participant's goal is to obtain profits in exchange for bringing in new marketers. The product sold often does not equal its true value and is merely a cover for joining the marketing program. This type of transaction is Islamically prohibited because it involves usury of both types (Al-Fadl and An-Nasi’ah), as the participant pays a small amount to receive a larger amount, which is money for money with disparity and delay. It is also a form of prohibited (uncertainty) because the participant does not know whether they will succeed in bringing in the required number of participants or not, and most members of the pyramid lose, except for the very few at its top.
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
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- Summary from Ftawy's records, reviewed by El Fatwa's sharia committee.
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