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We request assistance with regards to Multi Level Marketing.

Answered according to Hanafi Fiqh by DarulUloomTT.net

Question:

Muhtaram Muftiyaan Kiraam

Assalamualaikum Wa Rahmatullahi Wa Barakatuh

We make Duaa that Mufti Sahib is in the best of health and Imaan.

We request assistance with regards to Multi Level Marketing whether it is permitted or not. We have received queries on the following two schemes:

My question is about a way about business called ‘Multi Level Marketing’, if it is allowed or not. In this regards we have had two queries.

1. The attached document provides some insight on the first business.

2. The second is AMWAY. Some information from wikipedia regarding this can be found from the links below.

http://en.wikipedia.org/wiki/Multi-level_marketing

http://en.wikipedia.org/wiki/Amway

We apologise for any inconvenience and request your duas.

Jazakallahu Khairan

Was Salaam


Answer:

Wa Alaikum As Salaam,

Based on our research of the MLM (Multi level Marketing ) business, we have seen that it is not permitted for Muslims. The business is not a halaal one and hence, not allowed. The manner in which the business is conducted is not in keeping with the guidelines and laws of Islamic finance and economics.

The monies/benefits earned by those at the top are not on account of an accepted sale in Islam nor of a partnership scheme. In MLM, even after a transaction, one continues to earn profits from many levels of the down liners based on the sales and clients/customers they are able to recruit.

The goods are also sold at an inflated price. Along with these, many other issues have been pinpointed in the MLM (Multi level Marketing) business which are all opposed to the teachings of Islam.

As for Amway, this is an MLM scheme and will also not be permitted in Islam.

And Allah knows best,
Mufti Waseem Khan

17/4/2013

This answer was collected from DarulUloomTT.net, which is operated under the supervision of Mufti Waseem Khan from Darul Uloom Trinidad and Tobago.

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