Ruling in buying products of the DXN company and participating in its marketing scheme

I used the products of DXN which is a Malaysian company, and I have seen its results in the health of some people. But I am asking about the ruling on that from a shar’i point of view, because when you subscribe to the company you become a member of it, and have shares in it, in turn you build your own network. After you reach a certain level, you will get a certain amount of money every month, which will increase the more active you are.

Praise be to Allaah.

It is permissible to buy from this company and others that sell their products that have a real and fair value, without adding anything extra because of your participation in marketing. But it is not permissible to take part in their marketing scheme which is called “multi-level marketing” or “pyramid marketing”, because this system is based on ambiguity and consuming people’s wealth unlawfully. Some Muslim and non-Muslim countries have banned this system of marketing, and have warned people against taking part in it.

We have looked at their website and we have seen what they are selling and their system of marketing, and it is exactly what we have mentioned.

We have stated in several answers the ruling on participating in this kind of marketing system. Please see the answers to questions no. 42579, 40263, 45898 and 46595. Continue reading

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Participating in a savings scheme with a petroleum company

1. What is the ruling on saving with the Aramco company, whether as an investor or otherwise?
2. What is taqiyah according to the Sunnis and the Shi’ah?
3. Is it permissible to call Shaykh Ibn Baaz “Imaam”? and who are the Imaams according to the Sunnis?

Praise be to Allaah.

1. It seems that you should not save with the Aramco company, whether as an investor or otherwise, because you would be giving less money and taking more than the money given, which is the essence of riba, because when investing one is not subject to the risk of increase or loss, rather the profit is guaranteed, so it seems that this is not allowed.

2. According to the Sunnis, taqiyyah (dissimulation) means being sociable or affable without any hypocrisy or sycophancy, when it is necessary to be affable and say things that one does not believe, in cases where the Muslim fears for his life, but his heart is at peace and believes.

But for the Shi’ah, taqiyyah means outwardly appearing to agree with one’s opponent, even if he is right, whilst inwardly opposing him and persisting in their false beliefs. This is the essence of hypocrisy which means making an outward display of being Muslim whilst inwardly concealing kufr.

3. Shaykh Ibn Baaz is one of the imams (leaders) of guidance, and one of the most prominent scholars of sharee’ah which he supported and paid attention to, so he deserves to be regarded as a leader in Islam. Continue reading

Buying with funds from a savings scheme when he is one of the members of the scheme

We have a fund whereby each member gives an initial payment (500 riyaals) then makes monthly payments (100 riyaals). After a while, the fund grew and the people who were in charge of it were able to buy cars with cash and sell them by monthly instalments for a higher price. Some of the members of the savings scheme and other people bought the cars.
The first question is: what is the ruling on people who bought these cars in the manner described above, who were also members of the savings scheme?
The second question is: what is the ruling on a person who bought a car in the manner described above, who was a member of the savings scheme but was unaware (of the connection between the scheme and these cars)? If the answer is that it is not permissible, whether he has paid in full or is still paying?

Praise be to Allaah.

If this is based on the condition that one of the partners in this scheme can buy one of the group’s cars, then this is not permissible, because this comes under the heading of “two transactions in one”, since it involves partnership (being a partner in the scheme) and purchasing (buying the car). But if this is not a condition that was previously laid down, then there is nothing wrong with it.

And Allaah is the source of strength. May Allaah bless our Prophet Muhammad and his family and companions, and grant them peace. Continue reading

What conditions should be met in order for the bank’s purchase scheme (muraabahah) to be considered permissible

My question is: how sound is the following transaction, what is the ruling on it, what is the ruling on someone who has already gotten involved in it and what should he do?
The details of this muraabahah purchase program (as it is called by the bank) are as follows:
1 – The buyer goes and gets a price list for the bank from the main supplier of the product (a car showroom or agency, for example), including a description of the car, its colour, features and price (100,000 riyals, for example).
2 – The buyer obtains a letter stating his salary, and fills out the required forms to have part of his salary deposited in the bank for the period agreed upon with the bank (for example, three years), to pay off the total cost which includes the basic price plus the bank’s profit (for example, 7%).
3 – The contract is drawn up, including the processing fees (1000 riyals for example) and is signed by the bank, the buyer and the witnesses.
4 – The bank issues a draft cheque payable to the showroom or agency (the supplier) for the value of the car as quoted in the price list referred to in #1 above.
5 – The buyer takes the cheque and gives it to the supplier, who then does all the paperwork needed to register the car in the name of the buyer and gives it to him.

Praise be to Allaah.

This transaction is haraam and is not permitted. Basically this transaction is a loan with interest, which is the essence of riba (usury), because the bank gives the buyer a cheque for 100,000 and takes payment for it in installments, adding interest and what they call processing fees.

Calling this a purchase does not make it permissible, because this deal is essentially a riba-based loan and not a sale or purchase. Also, the bank is not buying the car from the showroom or selling it to the buyer, rather it is giving him a cheque for that amount.  Continue reading

Some companies put the buyer in a pyramid scheme without him wanting that

We found out from your site that with regard to companies that deal with pyramid schemes, it is permissible to deal with them, buying and selling and so on, so long as one avoids what is haraam, which is entering into these haraam pyramid schemes. But it has become apparent that some of them put the member under the supervisor, even if he did not register as a member under a supervisor in the beginning, and thus they bring him into the pyramid scheme sometime after he subscribes without him realising. What is the ruling on continuing one’s subscription in this case?.

Praise be to Allaah.

It is not permissible to join pyramid marketing schemes, because they are based on deception, gambling and consuming people’s wealth unlawfully. See the answer to question no. 97880 and what it contains of references.

If a person buys some product and does not want to enter into this scheme, but the company brings him into it, it is not permissible for him to continue subscribing, because continuing in an invalid contract is like entering into it in the first place.  Continue reading

Taking a card and giving money to its owner and five other people, in a pyramid scheme

I took a card from a friend of mine and I have to pay $100 for this card, and $100 to the person who gave the card to my friend, and $100 to five people who did the same thing, one after the other (i.e., like a chain letter or something similar). The sixth person takes $800 and the company that is in charge of this takes $800. It carries on like this until everyone who sends the card gets $400. If he gives four cards to four people, and each of them gives the card to another person, the first one will get $1600 and so on. 
Is it permissible to take part in this scheme?.

Praise be to Allaah.

This scheme involves gambling and consuming people’s wealth unlawfully, both of which are clearly forbidden as Allaah 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, jinn, 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. Continue reading