IslamQA

Selling an item higher than the shops price

Answered according to Hanafi Fiqh by Fatwaa.com

Assalamu alaykum Mufti,

 

The guy working for me sold an item that was for R10 , he sold it at R30 and took the R20 for himself , what is the ruling regarding this?

Answer

Wa’alaykum as Salam wa rahmatullahi wa barakatuhu,

In principle, it is not permissible to sell something which one does not own. Likewise, a buyer should not be decieved.

However, Islam does accept a commission/royalty structure.

In light of the above, this deal will only be permissible if the following conditions are met:

1) The seller agreed that the employee can put his own mark up,

2) The customer is not fooled into thinking that he is buying from a particular franchise/brand at the price of that franchise. For example, if its a Checkers; the customer should not think that this is the price of Checkers.

If these two conditions are fulfilled, it will be permissible for the employee to accept the additional funds.

And Allaah Ta’aala knows best

Wassalaam,

Ismail Moosa (Mufti)

This answer was collected from Fatwaa.com which is an excellent Q&A site managed by Mufti Ismail Moosa from South Africa. .

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