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The question

What is the legal ruling on dealing with the "Forever" company, which relies on network marketing, especially concerning the commissions paid by the company on a member's sales and the sales of their direct and indirect group members, which are considered an incentive and support, not a salary, and do not diminish the rights or commissions of the members?

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Source: FtawySummarized from the full answer at Ftawy · imported Sep 2, 20261 min readAlso available in العربية
The answer

This type of transaction is forbidden due to the elements of gharar (excessive uncertainty) and qimar (gambling) it contains. The intention behind it is the commissions and incentives that multiply the product's price or subscription value many times over. This effectively transforms the initial purchase into a gambling contract rather than a sale or a brokerage agreement. What has been said about pyramid marketing schemes concerning the presence of gharar, qimar, and riba (usury) also applies to this company. It is not permissible to call it a lawful brokerage, as the subscriber pays first to market, whereas proper brokerage entails the company paying him for marketing real goods. Nor is it permissible to describe the commissions and incentives as a lawful gift, because a gift takes the ruling of its cause, and these commissions originated from marketing that is religiously prohibited, so they assume the same ruling.

Summarized from the full answer at Ftawy · imported

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Source platform
Ftawy
Original fatwa ID
107837
Imported
Translation status
Source text, unreviewed
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