Dealing with Lyoness company

21-6-2010 | IslamWeb

Question:

Assalamu Alejkum, Lyoness (www.lyoness.ag/EU/) is a cash-back system company which is spread in 15 Europe countries and in US. All Lyoness partners offer discount to the costumers that have Lyoness cards. I was offering to become a business partner of Lyones in my country (Macedonia) and I have to pay for the membership. By becoming a business partner I will be able to deliver Lyoness cards to the costumers. On each transaction I'll benefit by having some percentage. My question is: Is it forbiden this kind of multi level marketing according to islam rules. Sincerly, Ardian

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Answer:

All perfect praise be to Allaah, The Lord of the Worlds. I testify that there is none worthy of worship except Allaah, and that Muhammad is His slave and Messenger.

 

If you have to pay some money in return for obtaining discount, then this is not permissible as this is Gharar (risk and uncertainty) and gambling and the Islamic Fiqh Committee issued a decision prohibiting the purchase of prepaid discount cards.

The decision number (103) 2/18 states that it is forbidden to issue the mentioned discount cards or to buy them if this is in return for a fixed sum or an annual subscription as this includes Gharar. That is because the buyer of the card pays money while he does not know what he will get in return.

Therefore, it is forbidden to deal with this company according to its system based on paying money in return for discounts and getting incentives and so forth. For more benefit, please refer to Fatwa 84635.

In addition to this, the system of this company is based on what is called the hierarchical marketing according to what we read in its site, and it is a forbidden system and it is not permissible to subscribe in it because it is based on Gharar, gambling and injustice.

Allaah Knows best.