Question(s)

Is a pyramid scheme permissible? Things involved listed below: Every person you sign on purchase products as well as sell, products list below: Insurance, Gas electricity, Trading academy (FX only), Mobile network, Web development. Now you can’t control what each person sells, so if they make money through insurance products, then you get commission for that too or FX trading both, which I know are not permissible. Each stage you reach, you get paid monthly like a wager for making these companies clients

Answer(s)

الجواب حامدا ومصليا ومسلما

In the Name of Allah, the Most Gracious, the Most Merciful.

As-salāmu ‘alaykum wa-rahmatullāhi wa-barakātuh.

In principle, working as an investment broker and earning a commission on investments is only permissible when there is no direct dealing with interest or any other unlawful transactions. [1] [2]

Pyramid schemes are typically filled with such unlawful elements. Moreover, such schemes are often full of gambling, ambiguity and deception. [3] [4] [5]

Since the scheme holder holds no control over the investment choices made by clients, the likelihood of clients investing in the unlawful elements outlined above are quite high. Thus, one should adopt caution from participating in such schemes.

And Allah Ta’āla Knows Best.
Mubasshir Talha
7 Ja’madal Oula / 22 December 2020

Concurred by:

Approved by:
Mufti Tahir Wadee | Mufti Yusuf Ilolvi
[To see their profiles, click here]

Note: This fatwa is only to be viewed with the question asked. In the event of presenting this to a third party, please ensure it is coupled with the original question, as well as the references below for Islamic Scholars.


DISCLAIMER: The views and opinions expressed in this answer belong only to: the author, any concurring Ulama’ and the senior approving Muftis – they do not in any way represent or reflect the views of any institutions to which he may be affiliated.

Arguments and ideas propounded in this answer are based on the juristic interpretations and reasoning of the author. Given that contemporary issues and their interpretations are subjective in nature, another Mufti may reach different conclusions to the one expressed by the author. Whilst every effort has been taken to ensure total accuracy and soundness from a Shari’ah perspective, the author is open to any correction or juristic guidance. In the event of any juristic shortcomings, the author will retract any or all of the conclusions expressed within this answer.

The Shari’ah ruling given herein is based specifically on the scenario in question.  The author bears no responsibility towards any party that acts or does not act on this answer and is exempted from any and all forms of loss or damage.  This answer may not be used as evidence in any court of law without prior written consent from the author.  Consideration is only given and is restricted to the specific links provided, the author does not endorse nor approve of any other content the website may contain.


[References]

[1]
والسمسار اسم لمن يعمل للغير بالأجر بيعا وشراء
[Al-Mabsūt, 15/115 – Dar al-Ma’rifah]

ولو استأجر السمسار شهرا ليبيع له أو ليشتري بكذا من الاجر جاز ذلك
[Al-Nutaf fil Fatāwa, 2/575 – Dar al-Furqan]

والسمسار هو الذي يجلب إليه الحنطة ونحوها لبيعها فهو يعمل بالأجرة أيضا
[Sharh al-Wiqāyah, 4/251 – Mu’assasah Al-Warrāq]

إجارة السمسار والمنادي…تجوز لما كان للناس به حاجة ويطيب الأجر المأخوذ لو قدر أجر المثل
[Raddul Muhtār, 6/47 – Dar al-Fikr]

فقہاء نے اجرت دلال کو حاجت کے واسطے جائز کہا ہے
[Imdād al-Ahkām, 3/546 – Maktabah Darululoom Karachi]

[2]
وأحل الله البيع وحرم الربا
[Qur’an Al-Kareem, Surah Al-Baqarah – Ayah 275]

يا أيها الذين امنوا اتقوا الله وذروا ما بقي من الربا إن كنتم مؤمنين
[Qur’an Al-Kareem, Surah Al-Baqarah – Ayah 278]

فإن لم تفعلوا فأذنوا بحرب من الله ورسوله
[Qur’an Al-Kareem, Surah Al-Baqarah – Ayah 279]

عن جابر، قال: لعن رسول الله صلى الله عليه وسلم اكل الربا وموكله وكاتبه وشاهديه وقال هم سواء
[Al-Sahih
Muslim – 1598]

[3]
يا ايها الذين امنوا انما الخمر والميسر والانصاب والازلام رجس من عمل الشيطان فاجتنبوه لعلكم تفلحون
[Qur’an Al-Kareem, Surah Al-Ma’idah – Ayah 90]

وهو حرام بالنص القمار
[Radd al-Muhtar ala ad-Durr al-Mukhtar, 6/403 – Dar al-Fikr]

Also see: [Fatawa Mahmoodiyyah, 16/387-340; Takmilah Fath al-Mulhim, 1/320; Ahsan al-Fatawa, 7/24-5]
For a detailed discussion see: [Islam aur jaded ma`ashee masa`il, 3:307-19, Idarah Islamiyaat]

[4]
عن أبي هريرة قال نهي رسول الله عن بيع الحصاة وعن بيع الغرر
[Sahih Muslim – 3170]

[5]
من غشنا فليس منا
[Sahih Muslim, 101]

آية المنافق ثلاث: إذا حدث كذب، وإذا وعد أخلف، وإذا اؤتمن خان
[Sahih Bukhari, 33]