Question

MLM company Qnet is working in chain or hierarchy type. In that we register after seeing the scheme or business plan not interest in the product and do transaction then during that time we have to select product but we are not willing to buy or not require that product because of expensive. Then start to get training that how to talk and show the plan to other people then they will join and start the work with us same procedure done. Then this person will show plan and add on more people then more then more then more and we will get the money from the company as the member join. I have joined but really not interested in the product just only seeing the business plan.
So, is this type of income from this business is halal or haram.

Answer 1

Ref. No. 2252/44-2401

In the name of Allah the most Gracious the most Merciful

The answer to your question is as follows:

Many companies have been brought in the past few years, where the profit is given on the wing system. And the referrer gets a commission for adding a member to this company, then as many people join the company by him, all the members in the wing above him get more or less commission. This is also called Network Marketing or Multi Level Marketing.

The aim of the participants in these companies is not to buy the products of the company, but to earn commission and get profit only, as if the purpose is only to receive commission and not to buy goods. According to Shari'ah, it is similar to interest and gambling; putting condition in deal; combining two separate trades into one; And in some cases, " charging an excessive price for a product" etc. These are few reasons for which, participation in it is not permissible.

In the 16th seminar of the Islamic Fiqh Academy of Delhi, scholars have declared it unlawful. So, withdraw your money from the company you have invested in as it’s earnings are not halal.

العِبْرَةُ فِیْ الْعُقُوْدِ لِلْمَقَاصِدِ وَالْمَعَانِیْ لاَ لِلْألْفَاظِ وَالْمَبَانِیْ . (قواعد الفقہ ص:۹۱) ”ہُوَ کُلُّ لَعِبٍ یُشْتَرَطُ فِیْہِ غَالِبًا أن یَّأخُذَ الْغَالِبُ شَیْئًا مِنَ الْمَغْلُوْبِ وَأصْلُہ أن یَّأخُذَ الْوَاحِدُ مِنْ صَاحِبِہ شَیْئًا فَشَیْئًا فِی اللَّعِبِ“ (ص:۴۳۴) انَّہ تَعْلِیقُ الْمِلْکِ عَلَی الْخَطَرِ وَالْمَالُ فِی الْجَانِبَیْنِ (قواعد الفقہ ص:۴۳۴، فتاوی ابن تیمیہ ۱۹/۲۸۴) المَیْسِرُ... امَّا من الیُسْرِ لأنہ أخذُ المال بِیُسْرٍ وَسُہُوْلَةٍ (روح المعانی: ۲/۱۱۳) الغَرَرُ مَا یَکُوْنُ مَسْتُوْرَ الْعَاقِبَةِ . (المبسوط:۱۲/۱۹۴)

نَہٰی رَسُوْلَ اللّٰہ صلى الله عليه وسلم عَنْ صَفْقَتَیْنِ فِیْ صَفَقَةٍ وَاحِدَةٍ . (مسند احمد حدیث نمبر:۳۷۷۴)

And Allah knows best

Darul Ifta

Darul Uloom Waqf Deoband