Is network marketing inherently forbidden, or is it due to a defect within it? And does the prohibition cease if the defect is removed? Is the ruling of prohibition general to all its types? What is the Sharia evidence for its prohibition, and what is the reason for this prohibition?

We have stated the impermissibility of multi-level marketing due to its inclusion of Sharia-prohibited elements. If these prohibitions are removed, then there is no harm in it, because the basic principle in transactions is permissibility, and the consideration in contracts is their meanings, not their mere words.

Multi-level marketing today is a system that usually only grows through the loss of one party for the benefit of another. This means that the majority lose so that the minority can gain, which constitutes consuming wealth unlawfully.

Furthermore, this system often relies on deceiving others and selling them illusions. Often, those who join have no interest in the product itself, but rather gamble on earning commissions. This is the forbidden gharar (excessive uncertainty or deception); gharar is when an outcome has two possibilities, the more likely of which is the more feared.

Multi-level marketing is not merely a brokerage; a broker receives a fee in exchange for selling a commodity, whereas a marketer in multi-level marketing pays a fee to become a marketer.

Also, the objective in multi-level marketing is not to sell goods, but to attract new marketers who, in turn, will attract other marketers.

This ruling is based on tracking the various types of multi-level or pyramid marketing. If a brokerage transaction or any other transaction is found that is called multi-level marketing but is free from prohibitions and impediments, then it is permissible. Its designation as multi-level marketing is irrelevant, because the ruling is not based on the name but on what the named entity entails.