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Is MLM Business Halal?
Is network marketing or Multi-Level marketing (MLM) business Halal in Islam?
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11 Replies
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Is MLM Business Halal?
updated 3 years, 5 months ago
4 Members
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11
Replies
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All kinds of business are halal, except if they have an aspect of polytheism or immorality e.g. dishonesty, scamming, obscenity, etc.
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Sir I don’t get it
What is meant by Immortality here?
If all type of businesses are Halal other than that what about Business of liquor (Sharaab) Making or selling?
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The Principles of determining haraam (prohibited) and halaal (lawful) have been detailed in Surah Aaraaf – 7:33
Say, “My Lord has only forbidden “fawahish” – what is apparent of them and what is concealed – and “ithm”, and “baghi”, and “shirk” for which He has not sent down authority, and “wa an taqulu a’lallahi ma la ta’lamoon” (Al-Quran 7:33)
We will briefly describe each of the terms below:
1) Fawahish – Immorality, lewd acts (Be Hayayi)
Unlawful sex (zina), wearing immoral/revealing clothes in public, using dirty languages and expressions etc. would come in this category. These are forbidden whether done openly or done in secrecy.
2) Ithm – Not giving due rights to others (haq talafi)
Treating parents with disrespect and not taking care of them, not dividing inheritance according to Quran, not giving workers their due wages on time, not giving the relatives their rights etc.would come under this category.
3) Baghi – Rebellion, arrogance, transgression (Sarkashi)
It is going against truth and righteousness knowingly and/or by use one’s power and influence. Attacking people’s life, wealth, honour and freedom of expression; arrogance, pride, kufr etc. all come under the category of baghi.
4) Shirk – Associating partner(s) with Allah.
Polytheism, praying to a human being, a deceased person or any other creation of Allah etc. would come under this category.
5) Wa an taqulu a’lallahi ma la ta’lamoon – To say about Allah of which we have no knowledge.
Bid’ah (innovation in religion) , declaring halaal as haraam and haraam as halaal without any evidence etc. would come under this category.
All things are halal (businesses in this case) as long as these 5 things aren’t found in them.
For alcohol watch the video in the end.
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Rimsha please refer to the following thread to understand the principle about what Saad sahab shared above.
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In addition to the above. Also, it is obvious and perhaps not stated earlier. Any business which involves, hoarding, taking undue advantage of a situation or taking excessive profits from the shortages of necessities of life will be prohibitted.
Also any business based on lies, cheating or deceipt will be strictly prohibitted.
Now MLM, if it is based on Pyramid scheme, that is if the profit of a seller is solely based on sale of product by buyers down the line of chain to more buyers will be totally prohibited. It is a scams in which the last layer of people loose all their money.
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Nadeem sahab all the things that you pointed out are already covered under immorality.
MLM as a business model is not a scam, nor is there any prohibition on it. Certain MLM type businesses can be pyramid schemes or other types of scams.
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Thanks for clarifying Faisal. I think there is a typo in your original response. Did you mean immorality in business?
Still, doesn’t hurt to name a few immoral things for an example. Also I specifically stated that only MLM pyramid schemes are wrong. Also I stated if this is not covered earlier. Did I state anything wrong?
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Thank you for pointing out the typo. It’s fixed now.
Yes absolutely you stated pyramid scheme. I just wanted to clarify that not all MLM businesses are pyramid.
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