Dealing with companies that use pyramid marketing
Question System forced matrix is a system whereby a person contribute S10 to a company and then the company plus another 4 persons (already selected in the system) shared $2 each credited into their respective accounts.It is a one time payment and a person expect other newcomers to this system to do the same.Everytime a…
Question
Praise be to Allah.
It is not permissible to
join this scheme, which is what is known as a pyramid scheme or a networking
scheme, because it is based on gambling and it is not known how the money is
invested in it. As for the gambling, if a person pays $10 in the hope that
new members will come and he will gain more, then this is the essence of
gambling, as he ay or may not make a profit.
Allaah has forbidden
gambling and has mentioned the prohibition on it with the prohibition on
alcohol, stone altars and seeking divination etc by arrows, as He says
(interpretation of the meaning):
“O you who believe!
Intoxicants (all kinds of alcoholic drinks), and gambling, and Al‑Ansaab
(stone altars for sacrifices to idols etc) and Al‑Azlaam (arrows for seeking
luck or decision) are an abomination of Shaytaan’s (Satan’s) handiwork. So
avoid (strictly all) that (abomination) in order that you may be successful”
[al-Maa’idah 5:90]
Gambling refers to any
transaction in which there may be a gain or a loss, and in which a person
does not know whether he will be a winner or a loser.
As for not knowing how the
money is invested, that is because it is not known where the company puts
its money or how it invests it. It is not permissible for anyone to invest
his money until he knows whether the way it is to be invested is
permissible. Many of these companies do not invest the money at all, rather
they cheat people and consume their wealth unlawfully. Hence these kinds of
companies are known in some countries as companies that sell dreams, or
illusionary pyramids, because no one gains from them except a small number
of people, then the company soon folds and ceases operation.
A number of scholars have
issued fatwas stating that it is haraam to deal with companies that use
pyramid schemes, even if they sell some goods or products.
See question no.
42579.
And Allaah knows best.
