What is the ruling on a merchant selling his goods while distributing coupons to customers for entry into a draw for prizes offered by the merchant?

Dealing with prizes conditioned on purchase depends on several factors:

1. For the seller: It is not permissible to raise the price of the commodity because of the prize, as that would turn the transaction into gambling, where the buyer is either a winner or a loser. If sold at the usual market price, there is no harm in offering prizes to encourage people to buy.

2. For the buyer: It is permissible to buy if the commodity is needed and at the market price, regardless of the prize. It is not permissible to buy solely for the purpose of obtaining the prize without needing the commodity, as this constitutes squandering money, which is forbidden in Islamic law.

3. Regarding its impact on the market: If these practices lead to market instability or harm other merchants, the state must intervene and prohibit them to achieve public interest.