What is Shariah View on Multi Level Marketing/Network Marketing?

Sources

• ✓ 2:275 · Al-Baqara

  2:275 · Muhammad Marmaduke Pickthall

  ٱلَّذِينَ يَأْكُلُونَ ٱلرِّبَوٰا۟ لَا يَقُومُونَ إِلَّا كَمَا يَقُومُ ٱلَّذِى يَتَخَبَّطُهُ ٱلشَّيْطَٰنُ مِنَ ٱلْمَسِّ ۚ ذَٰلِكَ بِأَنَّهُمْ قَالُوٓا۟ إِنَّمَا ٱلْبَيْعُ مِثْلُ ٱلرِّبَوٰا۟ ۗ وَأَحَلَّ ٱللَّهُ ٱلْبَيْعَ وَحَرَّمَ ٱلرِّبَوٰا۟ ۚ فَمَن جَآءَهُۥ مَوْعِظَةٌۭ مِّن رَّبِّهِۦ فَٱنتَهَىٰ فَلَهُۥ مَا سَلَفَ وَأَمْرُهُۥٓ إِلَى ٱللَّهِ ۖ وَمَنْ عَادَ فَأُو۟لَٰٓئِكَ أَصْحَٰبُ ٱلنَّارِ ۖ هُمْ فِيهَا خَٰلِدُونَ

  Those who swallow usury cannot rise up save as he ariseth whom the devil hath prostrated by (his) touch. That is because they say: Trade is just like usury; whereas Allah permitteth trading and forbiddeth usury. He unto whom an admonition from his Lord cometh, and (he) refraineth (in obedience thereto), he shall keep (the profits of) that which is past, and his affair (henceforth) is with Allah. As for him who returneth (to usury) - Such are rightful owners of the Fire. They will abide therein.

• ✓ 4:29 · An-Nisaa

  4:29 · Muhammad Marmaduke Pickthall

  يَٰٓأَيُّهَا ٱلَّذِينَ ءَامَنُوا۟ لَا تَأْكُلُوٓا۟ أَمْوَٰلَكُم بَيْنَكُم بِٱلْبَٰطِلِ إِلَّآ أَن تَكُونَ تِجَٰرَةً عَن تَرَاضٍۢ مِّنكُمْ ۚ وَلَا تَقْتُلُوٓا۟ أَنفُسَكُمْ ۚ إِنَّ ٱللَّهَ كَانَ بِكُمْ رَحِيمًۭا

  O ye who believe! Squander not your wealth among yourselves in vanity, except it be a trade by mutual consent, and kill not one another. Lo! Allah is ever Merciful unto you.

• ✓ Majma al-Bayan fi Tafsir al-Qur'an on 2:275

  Shia

  Majma al-Bayan fi Tafsir al-Qur'an · 2:275

  Those who consume usury do not stand except like the one whom Satan has struck with madness. The reason for this is their saying: "Trade is but like usury." But Allah has permitted trade and forbidden usury. Whoever has received admonition from his Lord and stops, then he shall have what has passed, and his affair rests with Allah. But whoever returns to it - those are the companions of the Fire; they will abide therein forever. **Language:** The root of the word "riba" (usury) is increase, from their saying "raba" (to increase) — it means an addition or increase on something. "Riba" specifically refers to the increase upon the principal amount of capital. To say "a man engaged in riba" means he dealt in usury. The hadith states: "Whoever takes usury has engaged in riba." The original meaning of "takhabbut" (to stagger) is to hit or strike unevenly. Derived from "khabt" (a strike). It can also mean an animal striking the ground with its legs uncontrollably. Here it refers to someone who acts without guidance or clear understanding, stumbling blindly — this is compared to madness or possession, where the person acts in an unbalanced and unsteady way. The term "khabaat" refers to a disease similar to madness, a confusion in the mind. Terms like "mas," "als," and "awlaq" are all references to possession and insanity. The word "saluf" means advancement or going forward; the past nations are called "al-umam al-salifa" (the former nations). "As-salifa" also refers to the back of the neck. "Islaf" means giving before it is due, for example to lend someone money in advance. "Al-'oud" means return, or tending to someone for their well-being. It also refers to sticks, which when cut can sprout again. "Al-ma'ad" refers to return or the final place to which all things return; "al-akhirah" is the hereafter, the return for people. "Al-'adah" denotes repetition of something again and again. "Al-'eid" means a major gathering day, recurring annually or weekly. "Al-'a'idah" means connection because it brings benefit to its owner. **Grammar:** In the phrase "kama yaqoom", the letter "kaaf" is in the accusative position acting as a verbal noun, and the relative pronoun implicitly stands for "la yaqoomoon" (they do not stand) except like the one whom Satan has struck with possession. The word "min" in "min al-mas" is connected to "yata khabbatu" (he staggers). **Meaning:** After Allah encouraged spending and described the rewards for those who spend generously in both this life and the hereafter, He mentioned usury — which the ignorant consider to be gain in wealth, when in reality it is a type of injustice. The verse says, "Those who consume usury in this world do not stand on the Resurrection Day except like the one whom Satan has struck with madness (possession)." This simile indicates, according to Ibn Abbas, Al-Hasan, Sa'id ibn Jubayr, Qatadah, and Mujahid, that the state of those who take usury will be visibly evident on the Day of Judgment. Some say this is metaphorical because Satan does not truly strike man with actual epilepsy; rather, when someone is deeply overwhelmed by stress or intellectual weakness, the devil may whisper tremendous thoughts causing the person to lose control — this is an act of Allah, but attributed to Satan figuratively due to his whispering. Abu Ali al-Jubai says it is possible for the devil to inflict true epilepsy on some and not on others, as a test or punishment for certain individuals as described by Abu al-Hadhil and Ibn al-Akhdhid. This affliction will be a sign on the Day of Resurrection, recognizable in those who consumed usury, just as every disobedient person is marked accordingly. Every obedient servant will have a sign of obedience as well, so all are known by their deeds. This is the implication of the verse, "On that Day no soul will be wronged in the least." The Prophet (peace be upon him) said about the martyrs of Uhud: "Wrap them in their blood and clothes." And the Imams say that the Prophet (peace be upon him and his family) was sent forth on the Day of Resurrection with traces of ablution visible on his body to identify him. Also, narrated from the Prophet (peace be upon him and his family): when he was taken on the Night Journey to the heavens, he saw men whose bellies appeared like transparent houses filled with serpents; when asked, Gabriel said: "These are those who consumed usury." Our Shi'a transmit from Abu Abdullah (peace be upon him) that the Messenger of Allah said: "On the Night Journey, I saw some people who tried to stand but could not because their bellies were huge; I asked, 'Who are these, O Gabriel?' He said: 'They are the ones who ate usury; they cannot stand except like the one whom Satan has stricken with possession.' Then they were set on the way to the fire of Pharaoh's family, appearing morning and evening, saying: 'Our Lord, when is the Hour and the promise?' This verse addresses all who engaged in riba, even if they did not literally consume it but benefited from it. But Allah particularly mentions "eating" it because most financial benefits are understood as consuming wealth. This matches other verses like "Do not consume one another's wealth wrongfully" and "Those who unjustly consume orphan's property." Here "eating" means all forms of unlawful benefit, not literal eating. The phrase "That is because they said, 'Trade is but like usury'" indicates their misguided claim that permissible sale is the same as usury. Ibn Abbas explained that when a debtor owed another, if he delayed payment, the creditor would demand an increase; they agreed upon it, treating it as reciprocal sale. When informed this was usury, they denied it by equating both forms of sale. Allah censures them and attaches the threat of punishment, saying, "Allah has permitted trade and forbidden usury." The difference is that permissible sale includes an exchange of equivalent substitution (the price in place of the item), whereas usury is an increase without equivalent compensation for the delay or increase in kind. The Prophet (peace be upon him and his family) explicitly forbade difference (tafadhul) in six commodities: gold, silver, wheat, barley, dates, and salt. It is said raisins are also included. The Prophet said: "Equal for equal, hand to hand; whoever increases or demands more has dealt in usury." There is consensus that usury happens in these six commodities; in other cases, jurists dispute and analogize to these. According to us, usury applies only to what is measured by weight or volume. The wisdom behind forbidding usury is explained as preventing disruption of livelihoods, trade, and agriculture due to unfair advantages compelling people to give extra in exchange for money. Imam al-Sadiq (peace be upon him) said the severity of usury prohibition stresses it so that people do not refrain from doing good acts such as loans or charity. "Whoever receives an admonition from his Lord and ceases" means anyone who receives warning, prohibition, or reminder and refrains. Then, "he shall have what has passed" means that whatever usury he took before the prohibition is his to keep and he is not obligated to return it. Imam al-Baqir (peace be upon him) said: "Whoever embraced Islam and repented from past deeds, Allah forgave past usury." Al-Suddi said: the person keeps what he took, but cannot take what he has not yet acquired, and has only the principal. The phrase "and his affair is with Allah" or "upon Allah is his command" can mean his standing is left to Allah's judgment: Allah may protect him from punishment if he sincerely refrains, or may let him fall if he returns. It can also mean that his reckoning is in the Hereafter, and Allah may punish or forgive him as He wills. "But whoever returns to it (usury) after receiving admonition," continuing their claim that trade is like usury, they are deemed disbelievers, and hence they are addressed as "companions of the Fire" who will abide eternally. Jurists agree that usury is forbidden both in cash and in deferred payments; some scholars argue usury only exists in deferred payments. In pre-Islamic times, usury was practiced by increasing the amount when extending due dates. Numerous hadiths emphasize the prohibition of usury. Imam Ali (peace be upon him) said the Messenger cursed five parties in usury: the consumer, the lender, the two witnesses, and the scribe. The Prophet (peace be upon him and his family) said that when God intends the destruction of a people, usury becomes widespread among them. Imam Ali also said that usury has seventy doors, the mildest of which is like committing incest with one’s mother. Similarly, it is narrated from Abu Abdullah (peace be upon him) that a silver coin of usury is considered by Allah worse than seventy illicit sexual acts, all involving forbidden partners, committed in the Sacred Mosque.