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Potential Pyramid Schemes

Answered as per Hanafi Fiqh by Qibla.com

Answered by Shaykh Faraz Rabbani

Assalamu Alaikkum A Company Sell a product call Bio Disc for $500. I bought that product. If i introduce that product to another person and if he buy that product, then i’ll get $35 from that company. If the second person introduce the product to another one and if he buy that product again we both get some $ from the company. This chain will continue as much as we and others introduce this product. The company says after 10 years time we may get big amount ( around $ 50,000 ). I just want to know is it allowed in islam to get money from this kind of service. Please clarify as soon as possible.

Answer:
In the Name of Allah, Most Gracious, Most Merciful

Walaikum assalam wa rahmatullah,

If this amounts to a pyramid scheme where the primary objective isn’t the product sold but to get others into the scheme to “sell” the “product” to others for such promises of high commissions and returns, then it is a fraud one should avoid.

And Allah alone gives success.

Faraz Rabbani

This answer was indexed from Qibla.com, which used to have a repository of Islamic Q&A answered by various scholars. The website is no longer in existence. It has now been transformed into a learning portal with paid Islamic course offering under the brand of Kiflayn.