Is trading in prices—that is, lowering them to attract customers and then raising them—permissible or forbidden? And is it permissible for me to do that in response to competition that harms me?
It is permissible for a person to act like their competitor in the market as part of legitimate competition. However, if there are other offices offering the same services with the same quality and at a certain price, then the scholars have stipulated that whoever lowers their price below that of the general public should be ordered to match them or leave the market.
Imam Ibn al-Qayyim narrated from Imam Malik that he said: "If a man wanted to corrupt the market and lowered his price below that of the people, I would consider that he be told: 'Either you match the price of the people, or you raise your price.'"
Ibn al-Qassar al-Maliki mentioned that both raising or lowering the price beyond the market price is forbidden, because it corrupts the sales of the market vendors and can lead to unrest and disputes.
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.
- Read the full ruling
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