What is the ruling of Islamic law on investing in the company ACN, which allows the sale of telecommunications and energy services for a commission, and relies on a network marketing system? And does the possibility for subscribers to advance to higher ranks exempt it from being a prohibited pyramid scheme?
It is not permissible to deal with this company because this type of investment is based on impermissible gambling and . It involves paying money in the hope of gaining more, which represents "a guaranteed loss and a potential gain." The fact that a latecomer might surpass an earlier participant does not change the fact that it is a prohibited pyramid scheme.
Network or pyramid marketing has previously been forbidden if it requires paying fees or purchasing a product.
Investing permissible money requires three conditions: 1. The money must be invested in permissible activities. 2. The capital must not be guaranteed, except in cases of transgression or negligence. 3. The profit must be specified as a common percentage of the profit, not of the capital.
These conditions are not met in this type of company.
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