What is the Law of Multi Level Marketing (MLM) in Islam

Amid the sluggishness and slump of the national economy, there came a promising business system and success and offered wealth in a short time.

This system was later known as Multi Level Marketing (MLM) or Networking Marketing. Many people joined it, both from the lay people or from the prosecutors, even from the news that reached us there were some Islamic boarding schools that developed this system for the development of Islamic boarding schools.

The question then arises, is the business with this type of model permissible or not? A problem that is not easy to answer, because this is an actual problem that has never been mentioned directly in the literature of our scholars.

But alhadulillah Allah has perfected this Islamic Shari'a to be able to answer all the problems that will occur until tomorrow doomsday with various texts and general principles about business and economic matters.

Therefore, by asking for guidance from Allah, hopefully when this hand writes and reason thinks, may Allah pour out the light of His truth and keep away from all the tricks of Shaytan.

Wallahul Muwaffiq

Important Tips for Business Actors

There are two methods that are very important to be able to understand almost all the problems related to Islamic law, as said Ibnul Qayyim Rahimahullah "Basically all legal worship is unlawful unless there is a argument that instructs it, while the origin of the transaction law and mu'amalah is halal unless there is a argument that prohibits it ". (See I'lamul Muwaqi'in 1/344).

The postulate of worship is the word of the Messenger of Allaah upon Himself: alahi wasallam:

"From Aishah radhiallahu anha said:" The Messenger of Allaah blessings and peace be upon him said: "Whoever practices something that has no example from us, will be rejected" (Narrated by Muslim)

The arguments for mu'amalah are the words of Allah Ta'ala:

He is Allah who has made everything in the earth for you "(Surat al-Baqarah: 29)

(See the Science of Suhul Al-Bida 'by Shaykh Ali Hasan Al-Halabi, Al-Qawa'id al-Fiqhiyah by Shaykh As-Sa'di p. 58)

Therefore, whether the business name and model is basically punished as lawful while being carried out on a voluntary basis and does not contain any of the elements of a shame, as the word of Allah Ta'ala:

"And Allah justifies buying and selling and forbids usury" (Surat al-Baqarah: 275)

Also His Word:

"O you who believe, do not eat each other's wealth with a false way, except with trade that applies on the basis of liking among you". (Surah An-Nisaa: 29)

The things that can make a business transaction become haram are:

Usury

From Abdullah bin Mas'ud radhiallahu anhu said: "The Messenger of Allaah 'alahi wasallam said:" Usury has the lightest seventy-three doors is a kind of sin of someone who commit adultery with his own mother "(Narrated by Ahmad 15/69/230, see Shahihul Jami 3375)

Ghoror

(There is high speculation) and jahalah (something unclear).

"From Abu Hurairah radhiallhu anhu said:" The Messenger of Allaah blessings (peace and blessings of Allaah be upon him) forbade buying and selling ghoror ". (HR. Muslim 1513)

The Law of Sharia Business MLM

The variety of forms of MLM business makes it difficult to punish in general, but there are several MLM systems that are clearly outrageous, namely using the system as follows:

Selling goods that are traded in an MLM system at prices far higher than the fair price, the law is haram because indirectly the company has added the price charged to the buyer as a capital sharing in the Syirkah contract considering the buyer will also become a member of the company if he participates in marketing, he will get a relay profit. Thus the practice of MLM trading contains elements of obscenity or fraud because there is a blur between the sale and purchase contract, syirkah and mudlarabah, because the buyer after becoming a member also functions as a worker who will market the company's products to prospective buyers or new members. (See Indonesian Fiqh p. 288)

Other / marketing

Promoting Scorum on Steem!

Multi Level Marketing Law in Islamic

Just do, ohh sorry, just don't do it Nike