Q. I would like to inquire about a certain type of business which is attracting increasing popularity. The most popular versions are Amway and Skybiz, both of which have branches and agents in India, Pakistan, the Philippines and other developing countries. Amway is a consumer product company while Skybiz specializes in computer and Internet business. The principle on which a person may deal with them is to pay a sum of money, say, 5000 rupees, to become an agent, and start selling their products door to door. He also tries to recruit more members, who would be under him. Once he has recruited 9 members, each of whom will pay the same amount and begin to sell the goods, he starts to receive a bonus on the basis of their sales. When we compare the prices, we find Amway products much more expensive than similar products on the market. Their products cannot be sold in supermarkets, and no advertisements are allowed. No guarantee is given. Skybiz allows a member a website spot of 35 MB capacity, which is sufficient for a few color pages. I would like to know whether this type of business arrangements is acceptable from the Islamic point of view.

M. Anvardeen, Riyadh

A. To start with, any business relationship based on equity and fair dealing is acceptable in Islam, which does not impose any strict rules or limitation on the type of business to be conducted. What is not acceptable is a relationship that seeks to exploit the needs or the efforts of a weaker party for the benefit of the stronger party. Let us now examine this business arrangement.

First of all we ask: what does a person who wants to be a member of such companies receive in return for his initial outlay? Amway gives him its products to sell at its exorbitant prices, but he has to make all the effort to sell. In order to increase his returns, he has to persuade others to join the scheme. Thus, he may work on friends, neighbors, clients, and others to enter into an arrangement to which they may not be suited. In trying to persuade them he may make them feel that the prospects are much better than they really are. No doubt some of them will find the task of selling door to door much more difficult than they anticipate. Some might be put off after one or two people turn them away unceremoniously.

Skybiz gives him a small corner in a website, but then what happens? Does he wait for people to visit his site and order their computers or Internet products? Or does he need to go out and sell door to door as well?

Then there is the element of getting a bonus on the sales of others you might have recruited to join the scheme. This is perhaps an important catch. But why should anyone get such a bonus. Suppose you have recruited ten people and five of them turn out to be very good salesmen. They sell a large amount of products, perhaps much more than you. You will be receiving a good bonus through no work you have done.

This is not acceptable from the Islamic point of view, because it is money that comes through no effort, and it is not a gift or a bequest. It is benefiting through someone else’s efforts. Similarly, when you sell the company’s products, some of the commission you should be paid goes to the person who recruited you.

There is also the element mentioned by the reader of the high prices of the products being sold. The company may claim that its products are of superior quality, but it seems clear to me that it can only market its products through this army of door to door sellers. If it were to offer its merchandise through supermarkets and other shops, where comparison with other products is easy, it may not be able to sell as much. Hence, there is an element of exploitation, which is multiplied through the amount of money a "member" has to pay initially. The company is gaining an agent who is willing to knock on doors to offer its products, and recruit similar agents. What is more is that it charges a substantial amount for the service. In fact, the company should be paying to such members or agents for the trouble they are undertaking.

Furthermore, there is a clear element of gharar, which is a term of Islamic law that describes a transaction in which one party is deliberately or incidentally made unaware of the full facts of the transaction. When gharar is on a very small scale, or unavoidable, and does not materially affect the deal, it may be overlooked. Otherwise, it renders the transaction forbidden. In this transaction the gharar element cannot be overlooked. Its scale is substantial; it has a material effect on the deal; and it is avoidable. For all these reasons I would say that the arrangement is unacceptable from the Islamic point of view, and I advise my readers not to get involved in such an arrangement.

An impossible marriage

Q. A friend of mine, who until recently was a Hindu, embraced Islam and began, with God’s help, to attend to all his religious duties. However, he just discovered that Islam forbids marriage with one’s niece. As he is already married to his niece, he is at a loss what to do, considering that he has young children. What is the status of his marriage? If he divorces his wife, it will certainly affect his relations with his present wife and children, as they will inevitably feel that Islam is responsible for the break-up of their family. Please comment.

S. Habibullah, Riyadh

A. This man has adopted Islam because he realized that it is the truth. When one adopts a new religion on the basis of conviction, he must abide by what that religion dictates. Such dictates are part of the truth he has come to accept. It is not possible for a person to accept a religion and then say that he wants one or two of its teachings modified in order to suit his circumstances. Some people made such requests to the Prophet, but he did not accept any such conditions. It was not for him to do so, because the religion of Islam is given to us by God, and no one can alter what God makes lawful or forbidden.

This man has recognized the truth of Islam and accepted it. He then discovered that his marriage cannot be accepted by Islam. No one can alter God’s prohibition of a marriage between a man and his niece. This is a permanent prohibition which will not be relaxed in any circumstances. Therefore, he has no way other than to abide by what God has ordered and to refrain from what He has prohibited. His marriage cannot continue, because it is invalid. He must divorce his wife.

Now, when this marriage is over, relations between the man and the woman may continue as one between uncle and niece. However, because of the marriage between them, they should not stay alone in any private situation. They may make any suitable arrangements so that their children are brought up normally, cared for by both their parents, but the separation must take place. There is no way out.