Selling an item higher than the shops price

19 Apr 2018 Ref-No#: 607

Assalamu alaykum Mufti,

 

The guy working for me sold an item that was for R10 , he sold it at R30 and took the R20 for himself , what is the ruling regarding this?

Answer

Wa’alaykum as Salam wa rahmatullahi wa barakatuhu,

In principle, it is not permissible to sell something which one does not own. Likewise, a buyer should not be decieved.

However, Islam does accept a commission/royalty structure.

In light of the above, this deal will only be permissible if the following conditions are met:

1) The seller agreed that the employee can put his own mark up,

2) The customer is not fooled into thinking that he is buying from a particular franchise/brand at the price of that franchise. For example, if its a Checkers; the customer should not think that this is the price of Checkers.

If these two conditions are fulfilled, it will be permissible for the employee to accept the additional funds.