What is the ruling on the profit gained by a sales representative between the price of purchasing goods from the company (at distributor price) and the price of selling them to customers (at market price), knowing that the company does not interfere in the selling price to customers, and that the representative receives a decreasing commission as the discount percentage obtained from the company increases?
Source: FtawySummary from Ftawy's records · added here Sep 2, 2026
The salesperson is an agent for the company, and it is not permissible for him to take the price difference for himself if he sells the merchandise for less than the discount rate specified by the company. The surplus belongs to the principal, not the agent, as indicated by the story of Urwah Al-Bariqi with the Prophet, peace and blessings be upon him. It is not permissible to take this difference except with the company's permission.
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
Read the full answer on Ftawyhttps://ftawy.com/en/questions/117975
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- Ftawy
- Original fatwa ID
- 117975
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- Summary from Ftawy's records, reviewed by El Fatwa's sharia committee.
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