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The question

What is the ruling of Islamic law on the system of network marketing or pyramid schemes that relies on purchasing points and recruiting other distributors to benefit from their points and sales?

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Source: FtawySummarized from the full answer at Ftawy · imported Sep 2, 20261 min readAlso available in العربية
The answer

This type of work is multi-level marketing, and we have already clarified its prohibition due to the deception, fraud, uncertainty (gharar), and gambling it entails. Therefore, it is impermissible to work for that company under that system, just as it is impermissible to sell or buy its products with the intention of obtaining multi-level marketing returns and earning its points. This holds true even if the products are useful and the amount paid for them is their true price, as long as the motive for selling or buying is to earn points and gain returns from that system, which is based on uncertainty (gharar) and gambling.

Summarized from the full answer at Ftawy · imported

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Ftawy
Original fatwa ID
108306
Imported
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Source text, unreviewed
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