The one who displays his goods in an auction is forbidden from bidding on them
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Fatwa number ( 20466 )
Q: We would like to ask you, Your Eminence, about the ruling on an owner of goods who bids on his own goods in a public auction to increase the price of the goods that will return to him. What is your opinion, Your Eminence, on this action? And what is the ruling of the Shari'ah in that? Also, we would like to ask about an owner of goods who increases the price of his goods in the auction, not with the intention of
selling them in the auction, but rather to raise their value in the eyes of people in case they are sought. Is this action permissible, and what is the ruling of the Shari'ah on one who engages in this behavior? Please inform us, may Allah reward you with the best reward. .
A: One who offers his goods to be sold at a public auction is forbidden from starting to bid on them, even at their market price, or at a price lower than their value, or by raising the price when customers are bidding on them in order to increase the price, whether he intends to sell them in that auction or intends to raise the selling price in the future. Likewise, it is forbidden if he says, "I gave so much for them," while he is lying; because that falls under the prohibited *najsh* (artificially raising the price), and because of the lying, deceiving people, oppressing them, consuming their wealth unjustly, and misleading the buyer that it entails. The Lawgiver has forbidden the sale involving *gharar* (excessive uncertainty). Ibn al-Qayyim said: "Gharar is that which is hidden from our knowledge and whose consequences are unknown." *Najsh* is absolutely forbidden, whether it is done by the owner of the goods or by anyone else present at the sale who raises the price while not intending to buy it, in order to harm the buyer or benefit the seller, or vice versa. And *najsh* committed by the owner of the goods is more oppressive and a greater sin than that committed by others.
Q: We would like to ask you, Your Eminence, about the ruling on an owner of goods who bids on his own goods in a public auction to increase the price of the goods that will return to him. What is your opinion, Your Eminence, on this action? And what is the ruling of the Shari'ah in that? Also, we would like to ask about an owner of goods who increases the price of his goods in the auction, not with the intention of
selling them in the auction, but rather to raise their value in the eyes of people in case they are sought. Is this action permissible, and what is the ruling of the Shari'ah on one who engages in this behavior? Please inform us, may Allah reward you with the best reward. .
A: One who offers his goods to be sold at a public auction is forbidden from starting to bid on them, even at their market price, or at a price lower than their value, or by raising the price when customers are bidding on them in order to increase the price, whether he intends to sell them in that auction or intends to raise the selling price in the future. Likewise, it is forbidden if he says, "I gave so much for them," while he is lying; because that falls under the prohibited *najsh* (artificially raising the price), and because of the lying, deceiving people, oppressing them, consuming their wealth unjustly, and misleading the buyer that it entails. The Lawgiver has forbidden the sale involving *gharar* (excessive uncertainty). Ibn al-Qayyim said: "Gharar is that which is hidden from our knowledge and whose consequences are unknown." *Najsh* is absolutely forbidden, whether it is done by the owner of the goods or by anyone else present at the sale who raises the price while not intending to buy it, in order to harm the buyer or benefit the seller, or vice versa. And *najsh* committed by the owner of the goods is more oppressive and a greater sin than that committed by others.
Source
www.alifta.gov.sa
The Arabic text is copied verbatim from the original source, without any edits.