Selling items online using doubtful bidding

6-1-2011 | IslamWeb

Question:

Asalam-u-Alaikum I would like to know about a business is it according to Sharia or not. We will sale items online using bidding. For example we will start selling $500 laptop from dollar $1. Now people will come and start bidding for laptop on each bid we will charge $0.65 after which price of laptop will be $1.01. Now again if some one bid we will charge $0.65 and price of laptop become $1.02. It will continue until bidding stop and laptop will be sold at final bid price not matter how much it is low or high. So could you please let me know if it is according to Sharia ruling. Regard,

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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 this amount which the participant in the auction pays is (approximately) the actual cost of carrying out this auction, then this is permissible. But if the amount that he pays exceeds that actual cost, then this is gambling, because a person incurs an inevitable loss for potential gain, and this is the essence of gambling. In fact, this is what appears from the mentioned method, because its purpose is to renew the bidder’s subscription and take fees for that, so it is not a real auction sale but it is just a trick to take people’s money unjustly.

The Decision of the Islamic Fiqh Academy about auction sale reads: “It is permissible in Sharee’ah to charge admission fee (to the auction) – which is the price of the terms and conditions brochure – provided it is not more than its actual cost.” For more benefit, refer to Fatwa 124713.

Allaah Knows best.