Fatwa No : 81901
Ruling on the Business of "GoldMine International" Company

Ruling on the Business of "GoldMine International" Company

To the Esteemed Muftis, As-Salāmu ‘Alaikum wa Rahmatullāhi wa Barakātuh!
What do the esteemed scholars and respected Muftis say regarding the following matter: Nowadays, there is a business operating under the name GoldMine International, which is a company dealing in gold and similar items, and is based in European countries.
Business Description is to join this business, one must first pay $60 (which is approximately 4,600 to 4,800 Pakistani Rupees). The business is conducted through the internet/computer. After joining, you are given two options: Right and Left. Now, if you manage to recruit one person on the right side and one person on the left side (i.e., you bring them into the business), then those individuals must also pay the same $60 as a joining fee. Upon successfully adding these two members, you are rewarded with the equivalent of the earnings of three people, not just two. Further details are as follows: Once your account reaches $300, you are required to purchase a product from the company (such as a watch, gold bracelet, or similar item). After this, when your account reaches $500, you can cash out the money via computer, and the amount will be transferred to your account, which you may then withdraw. We request a detailed explanation and ruling in light of the Qur’an and Hadith, Is this business permissible (halal) or impermissible (haram)? Some people claim that certain scholars have issued fatwas permitting it. Therefore, we request your clear and detailed guidance: Is this business lawful or not?

الجوابُ حامِدا ًو مُصلیِّا ً

The procedure of "GoldMine International" described in the question has been carefully examined. Nowadays, many similar companies have emerged that sell low-value items at inflated prices and, alongside, offer commission incentives for recruiting new members. People, enticed by the lure of commission, purchase low-value items at high prices, which, according to Shariah, is a form of "Qimar" (gambling).