What is the ruling on selling goods and products through an internet website using a network marketing system—which differs from pyramid marketing—where participants are incentivized with a percentage for their commission, and where goods are offered for barter in commercial quantities with other countries?
We believe that the multi-level marketing practiced by the aforementioned companies is forbidden due to its inclusion of (excessive uncertainty/risk) and the unlawful appropriation of people's money. The product in such schemes is not the primary objective; rather, the commissions are. This system is based on deception and involves a losing tier and another tier that profits from the money of the losing tier.
As for your company's system, we cannot rule on its permissibility or prohibition based on the generalities mentioned. Rather, it requires examining the exact wording of the contract between you and the participant. The original principle is the permissibility of commercial brokerage (samsarah) if the product is permissible.
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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