e-koole: About MLM

Indonesian Ulema Council give attention to the MLM business in Indonesia by decree would mlm business traits can be accounted for in the Shari'ah .COMMISSION DECISION CONFERENCE FATWA FATWA MUI BANDUNGNumber : 291/MUI-KB/E.1/VIIAbout LAW BUSINESS MLM / NETWORK MARKETINGDeliberation Bandung MUI Fatwa Commission that discuss MLM Business Law , afterCONSIDERING :

a. increasingly wide range of products of a company that was sold to the public with a MLM system .

b.Bahwa therefore , Bandung MUI fatwa deemed necessary to decide on the legal issue in question.NOTING :

a. The questions from people about the legal status of the MLM business .b . Opinions and suggestions of the participants Ulama deliberation .WHEREAS :

1 . Problem Description as follows : In simple terms , that themarketing of a product from a company there are two kinds of ways :

A. That is a common effect , called the arrival of a way konvensional.Yaituproducts to consumers after going through at least 4 ( four ) stages of the following : fromfactory to the distributor , then to the agent , then the wholesaler , thento retailer / store and new to consumers . When the price of Rp factory .100,000 then after up to consumers could be Rp . 200,000 or more ,absorb as many costs , such as production costs , promotion costs and expensesother .

B. MLM ( Multy Level Marketing ) or tiered marketing system ( NetworkMarketing ) In this system a consumer should be able to recruit consumers( network ) called frontline underlying ( network / feet first ) and referralsor upline ( network / second leg and so on ) and she will receive a benefit( percentage ) of any expenditure such referrals . More and more network( downline ) , the greater the benefit to be received by it . whenable to reach a certain point as per the requirements , he will occupy a positionand will receive a bonus that has been determined . This method disconnects steps above ,ie from factory direct to the consumer which also can bedistributors . Regarding price , fixed as above only excess factory priceThe advantage became a distributor .In fact there are three kinds of forms associated with MLM business :a. MLM is not selling a product , commonly called money games ( game money ) .

Example : The MLM offers a motorcycle brand x only with depositmoney Rp . 2,000,000 , subject to be able to capture as many as ten peopleeach of which shall deposit the money of Rp . 2,000,000 anyway . He willreceive the bike after ten people were able to capture , and whennot , then the money is forfeited . And so on .

b . MLM companies , is a company that sells other people's productswith sistern MLM , which he bought a product from the factory thenMLM marketing system . MLM companies sometimes cause the price becomes reasonable ( above market price ) and sometimes blurred some where , so many never receive the promised bonuses andmost network under the network can not develop anymore .

c . The company that markets its products to the system Tiered Sales ( Network Marketing ) . Is a company that sells products with tiered system , so that every consumer in the company is also a distributor . Where will benefit in accordance with the amount of tissue and the turnover achieved in accordance with the approved marketing systemfrom the beginning . With the price of the product is quite reasonable .

2 . Principles of Islamic Mu'amalat : Islamic law is law -orientedfor the greater good of human life , both individual and society ( mashalih al - ' amma ) . Orientation is a fundamental consideration for any mu'amalat happened , both for existing and new ones emerged that many such communities responded by Network Marketing / MLM .Islamic Mu'amalat is HALAL for built on the following principles :

1 . Tabadul al - manafi'Â ( the exchange of valuable goods manfa'at )

2 . ' An taradlin ( willingness of both parties to a transaction with no coercion )

3 . ' Adamu al - gharar ( not speculate that it is not clear / transparent )

4 . ' Adamu Maysyir ( no chance or gambling like ba ' i al - hashat yi : throwing stones and gravel that was hit was to be purchased , or like to buy the land area of the throw pebbles at a price that has been agreed upon , and ba ' i al - lams yi : goods that have been touched to be purchased )

5 . ' Adamu Riba (no system of compound interest ) ,

6 . ' Adamu al - gasysy ( no gimmick ) , such as al - tathfif ( cheating in weighing or measuring ) ,

7 . ' Al - Najasy Adamu ( not doing Najasy bidding on an item that is only to influence other prospective buyers so the price is high ) ,

8 . Ta ' awun ' ala al - birr wa al - taqwa ( please help in goodness and piety ) ,

9 . Musharaka ( partnership ) .

3 . Principle ( pillars ) of buying and selling .

a. Ba ' i ( the seller ) ;

b . Jove ( the buyer ) ;

Terms for the seller and the buyer are to be shah ( decent ) transactions .

c . Mabi ' ( traded goods ) .As for the condition of goods traded must exist manfa'atnya , sacred objects ( not the unclean thing ) and lawful consumption and or worn / used .

4 . Islam permits the making of any transaction requirements in the agreement that was agreed by all parties , as in the above MLM business , as long as not to justify the unlawful or otherwise .

5 . The arguments as follows :A. The Word of God Almighty :" O you who believe, do not take possessions among you in a way that is vanity , except through trading with willingness among you . " ( Q.S. al - Nisa : 29 . )" Bertolong - menolonglah you in goodness and piety , and do not bertolong - helping in sin and enmity . " ( Q.S. al -Maidah : 2 ) ." Woe to those who are cheating , ( ie ) when people receive their dose of another person asked fulfilled , and when they measure or weigh for others , they reduce . " Q.S. ( al - Muthaffifiin : 1-3 ) ." Surely those who believe it is relative, then rukunlah among your brothers . And bertaqwalah to Alllah that ye may receive Mercy . " (Surat al - Hujurat : 10 ) ." To treasure not revolve only among the wealthy among you . " ( Al - Hashr Q.S. : 7 ) .

B. Word of the Prophet Muhammad :" Prophet . prohibit the sale by way of throwing pebbles . " HR . Five people perowi hadith of Abu Hurairah except Bukhary Ra ." Verily the Messenger of Allah . said: "He took up arms towe ( Muslims ) it is not our people , and who deceive us then notour people " HR . Muslim from Abu Hurairah Ra ." Verily the Messenger of Allah passed a sack of food ( wheat ) , and then put his hand in the bag and his fingers touched the wet , then he asked : " Why is this , O owner of the food ? " " Affected rain water , so Allah's Apostle ! " Replied the owner of the food .Prophet . said : " Why do not you keep it wet at the topin order to be seen. Who are we then not deceive our people . " HR . Muslim from Abu Hurairah Ra" Verily the Messenger of Allah . has said : " You shall not commit anotherNajasy ( bid items only to influence other prospective buyersso the price is high ) . " HR . Muttafaq ' alaih of Abu Hurairah Ra ." The Prophet forbade saw.telah do Najasy . " HR.Muttafaq ' alaih of Ibn Umar Ra .From Jabir Ra . he heard the Messenger of Allah . said in Makkah in the yearfutuh Makkah : " Surely Allah and His Messenger have forbidden to sellkhamr , carcass , swine and idols sell . Then someone asks : "O Allah's Apostle , what about the carcass fat because like whitewash used boats , used lubricate the skin and made light by the people ? " " No, he is unclean . "Answer the Apostle . Then he said again : " Allah destroy the Jews , because when Allah Almighty forbids carcass fat , they do engineering then sell it and take the result . " HR . Five people perowi hadith .Still from Jabir Ra . : Messenger of Allah . prohibit the sale of feed resultsdogs , wages and wage berdukun adultery . And in the other history : the Prophet . prohibit the sale proceeds dogs and animals sinnaur . HR . Five people perowi hadith except Bukhary ." From Anas Ra . he said : "The Messenger saw.mengutuk ten people in a matter of khamr :That makes it , who ordered create , the drink , the transport , the transport menyurruh , distributors , seller , who takes the proceeds , the buyer and the bought . " HR . Tirmidzy and Abu Dawud .Allah says in a Hadith Qudsi : " I was the third ( which is alwaysassist ) two people who enter into, as long as one ofboth did not betray his friend . When he defected then I also came outof both. " HR . Abu Dawud and al - Hakim , Sahih" The Muslims were bound by the terms / agreement they create . HR . Bukhary .

C. Rule Fiqh : " Do not exacerbate and not dimudaratkan ( not mutually exacerbate ) . "" The law is associated with a condition / agreement unless the shah not the existing requirements . "DECIDEWith the constant appeals for ridla and taufiq and guidance of Allah .Establish :First : The first MLM is MLM not selling productscalled money games ( game money ) is haraam , because it is fraudreal .Second : The second MLM MLM company which sells the company's productsanother is permissible , only potential consumers ( prospective members of the MLM ) mustbe careful because the price of goods becomes unnatural , and can sometimes bebankrupt .Third : The third is an MLM company that markets its products withtiered system sales over the shah legal / lawful . The existence of the bonuspromised , equated with ju'alah .To note :

1 . For prospective members , should understand the procedures and regulations that apply to MLM ;

2 . For anyone should not buy things that are not needed because it includes israf forbidden by Islam .Bis - Shawaab Allah knows best .