The ruling on one who offers prizes to those who buy a specific item from him
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His Eminence the Shaykh: In our country, Kuwait, there are types of sales that are widespread now. The merchant displays his goods and distributes coupons to buyers based on the value of each person's purchase. These coupons enter a prize draw, and then a lottery is held, and some people win prizes which this merchant distributes to them. What is the ruling on this? May Allah reward you with good.
This is a type of sale in which we address both the seller and the buyer.So we say to the seller: Are you raising the price of the item for the sake of this prize, or not? If you are raising the price, it is not permissible; because if he raises the price and people buy from him, they become either losers or winners, either gaining or losing. If this item is in the market—for example—worth ten, and he makes it twelve for the sake of the prize, this is not permissible; because the buyer paying twelve either loses the amount over ten or wins multiples of the prize. This falls under the category of gambling and prohibited betting.If the seller says: I sell at the market price, I do not increase or decrease; so he may place those prizes to encourage people to buy from him.
Then we turn to the buyer and say to him: Did you buy this item because you need it, and you would have bought it whether there was a prize or not, or did you buy it solely for the sake of the prize?If he says: The first.
We said: There is nothing wrong with buying from this one or that one; because as long as the price is the same as the market price and you will buy this item for your need, then in that case you are either a winner or safe. In this situation, there is nothing wrong with buying from the one offering prizes.
And if he says: I buy, but I do not want the item; rather, I buy in order to get the prize.
We said: This is a waste of money; because you do not know whether you will win the prize or not.
And it has reached me that some people buy cans of milk which they do not want, they buy them and pour them out, hoping to get the prize. This is a waste of money, and it is established that (the Prophet (peace and blessings be upon him) forbade the waste of money).
A third thing remains: If someone says: This transaction may harm other sellers; because if this seller offers prizes to buyers and his price is the same as the market price, all people will turn to him, and the goods of other merchants will stagnate, so there is harm to the others.So we say: This returns to the state, and it is obligatory for it to intervene. If it sees that this matter causes market instability, then it prohibits it if it sees that the public benefit lies in prohibiting it, or if it sees that it is manipulation in the markets, and manipulation in the markets is something the one in authority must prohibit.
This is a type of sale in which we address both the seller and the buyer.So we say to the seller: Are you raising the price of the item for the sake of this prize, or not? If you are raising the price, it is not permissible; because if he raises the price and people buy from him, they become either losers or winners, either gaining or losing. If this item is in the market—for example—worth ten, and he makes it twelve for the sake of the prize, this is not permissible; because the buyer paying twelve either loses the amount over ten or wins multiples of the prize. This falls under the category of gambling and prohibited betting.If the seller says: I sell at the market price, I do not increase or decrease; so he may place those prizes to encourage people to buy from him.
Then we turn to the buyer and say to him: Did you buy this item because you need it, and you would have bought it whether there was a prize or not, or did you buy it solely for the sake of the prize?If he says: The first.
We said: There is nothing wrong with buying from this one or that one; because as long as the price is the same as the market price and you will buy this item for your need, then in that case you are either a winner or safe. In this situation, there is nothing wrong with buying from the one offering prizes.
And if he says: I buy, but I do not want the item; rather, I buy in order to get the prize.
We said: This is a waste of money; because you do not know whether you will win the prize or not.
And it has reached me that some people buy cans of milk which they do not want, they buy them and pour them out, hoping to get the prize. This is a waste of money, and it is established that (the Prophet (peace and blessings be upon him) forbade the waste of money).
A third thing remains: If someone says: This transaction may harm other sellers; because if this seller offers prizes to buyers and his price is the same as the market price, all people will turn to him, and the goods of other merchants will stagnate, so there is harm to the others.So we say: This returns to the state, and it is obligatory for it to intervene. If it sees that this matter causes market instability, then it prohibits it if it sees that the public benefit lies in prohibiting it, or if it sees that it is manipulation in the markets, and manipulation in the markets is something the one in authority must prohibit.