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Question # : 385

India

As-salaam alaikum


Right now I m doing business named RCM business it is MLM (Multi level Marketing) in this business we have to make twwo more distributor not more than that it is textile industry but now it also produces FMCG (Daily commodity goods) in this business the company gives us commission on the sale and on the purchasing goods from the company the concept of this business is that instead of giving money to the advertisers it gives commision to the distributor. As the business volume i.e. sales increases the percentile increses.But here it gives the commission from the sales.for eg if we buy a tooth paste for 32 rupees we get back 20% also as compared to other market product it is cheap. My question is that can we do this business.

Answer : 385

Published on: May 23, 2007

بسم الله الرحمن الرحيم


(Fatwa: 118=117/D)


 


It is allowed to become member of RCM and take commission on that. Likewise, it will be allowed to sell items purchased thereof and receive benefit. But, participating in the network marketing system which requires adding two members in the network and getting benefit on the purchasing of these members, is unlawful. Also, there are some more evils in this scheme that involve interest and Bai-e-Fasid (transaction having any major falult). Therefore, it will not be allowed to participate it.



Allah knows Best!


Darul Ifta,
Darul Uloom Deoband

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