A network marketing company
20-6-2004 | IslamWeb
Question:
I would like to know the Islamic view regarding the network marketing company (my7diamonds). This company has been licensed under Dubai Internet City. I want to join this company. Please advice me, whether it is Halal or not?
Answer:
Praise be to Allah, the Lord of the Worlds; and may His blessings and peace be upon our Prophet Muhammad and upon all his Family and Companions.
Having read how this company functions, we came to the conclusion that dealing with it is unlawful because its profits are derived from advertising and marketing rather than the sale of its products. This is because most of the people dealing with it do not want to purchase its products. Their ultimate aim is to collect the money given in return for bringing in new customers. They can succeed in this mission and get what they paid or more. Similarly, they might fail in their mission and get nothing. This is pure gambling. These transactions are around the gain and loss and the commodity itself has no importance in this deal. This could be proved by the fact that these programs could be bought at a lesser price than the price paid by this company and had the company given up paying amounts to the participants, only a few people would have accepted to buy these goods at such prices. Moreover, many customers participate with many names and buy the same commodity many times and this is a clear proof that the aim is the money not the commodity. This is why the customer pays annual fees for participation. Now, suppose that a customer is after the commodity, we advise them to avoid participating in such gambling. Allah Says (interpretation of meaning): {…do not help one another in sin and transgression} [5:2].
We add to the above that the transaction includes the sale of Internet sites and cards for lowering prices as advertised in the site of this company and this is another prohibition. Two more prohibited acts are added to the already stained transaction.
1. It is unlawful to sell price lowering cards as dealing in them includes gambling and eating other people’s properties with no legal right.
2. These Internet sites can be used in that which is forbidden by Shariah. So, it is unlawful to help these people develop such sites.
Allah knows best.