Is the hadith (The One who sets prices is Allah) authentic? With an explanation of some of the jurisprudence of the hadith?

Abu Malik: What is the degree of authenticity? He is asking about the hadith meaning, is it authentic?

The Shaykh: Is that the question?
Abu Malik: Yes, that is the question.

The Shaykh: Yes, this hadith is authentic. The original ruling is not to set prices, because Allah is the One who sets prices, as came in the authentic hadith in its full text. The meaning of this is that the freedom of buying and selling must be established firmly, and it is not permissible for the Muslim ruler, truly, to intervene in the general market. This is because the Islamic society is guided by a system in which it is raised, and there are two means: one is upbringing stemming from the heart of the believer, so he fears Allah (Mighty and Majestic) and does not contravene the rulings of his religion. The other upbringing stems from the Muslim ruler, who is supposed to be concerned with the conditions of the Muslims and to look into or become aware of their conditions. Then, if he finds deviation among them, he corrects them sometimes with his tongue, sometimes with his voice, and sometimes with his whip, according to the reality he first becomes aware of, and then sees that the Sharia'ah interest requires a type of that educational means I referred to earlier. On this basis, buying and selling should be absolute from the ruler; there is no restriction or condition, because what Allah brought through the tongue of His Prophet (peace and blessings be upon him) of restrictions and conditions is sufficient to rectify the Islamic society so that it walks together on a straight path. It is necessary that some of these individuals who live under the rule of this Muslim ruler, the truly Muslim one, may deviate and go astray from the path and the straight way, even in some rulings. Here, the Muslim ruler intervenes, and the narrated report from Uthman ibn Affan (may Allah be pleased with him) is true in him, and Allah knows best about its authenticity, because we consider it wisdom: "Indeed, Allah (Mighty and Majestic) restrains and educates by the ruler what is not restrained by the Qur'an." Because the Qur'an only educates the people who are truly and genuinely believers. As for those who have in their hearts a disease, or a defect, or weakness, or something similar to that, it is the ruler who takes charge of their education. This price-setting is prohibited by the Sharia'ah for the reason that people proceed, as we said, with a restraint from their hearts. For example, he (peace and blessings be upon him) said: meaning, selling and price-setting according to what the owner of the goods sees. And you know that the system called the economic system is subject to what? To supply and demand. So it is not permissible to set a specific price limit for a certain commodity, because one commodity differs from another, and one need differs from another, and so on. But if a society becomes corrupt and goes astray from this first means, education by the Sharia'ah rulings, and they go out from it and no longer adhere to it, meaning they do not rule according to the rulings of Islam, then at that time, the Muslim ruler may set prices. This price-setting is not stemming from the judgment of one or two persons only, who do not have knowledge, first, of the rulings of Islam, second, of the system of economics in Islam, and third, of the reality of the needs of the Islamic society. Rather, there should be a committee or body or ministry that gathers from all specialties, from the people of knowledge. At that time, these people study the situation, so they set prices for some things and leave other things as they are, according to the original ruling. But this should not be a continuous system, as is the case in the lands of disbelief, price-setting on the whole line. Why? Here the secret appears to you in the first part of Islamic education: they do not have Sharia'ah rulings to adhere to, they do not have a psychological and heart restraint that directs them in the correct direction. And so their system became price-setting in a continuous, always and forever manner. The Muslim ruler, as we said in some of the previous rulings in the previous session as well, that the original ruling in such and such is so, but it is permissible sometimes to go out from this original ruling for the sake of interest. Likewise, we say in price-setting: The cause of this hadith, perhaps, is what I mentioned earlier. They said: "Set prices for us, O Messenger of Allah." He said: , "Set prices for us," and he is the ruler, he said: meaning, the original ruling is that price-setting should be like this from Allah (Mighty and Majestic) according to what He provides for the servants, much or little, and so on.
As for the Muslim ruler, it is not permissible for him to resort to price-setting except for specific, certain circumstances, and by a scientific body that gathers those with different specialties. Yes.
Abu Malik: And I think it is prescribed for him, our Shaykh, to be named Abd al-Mus'ir?

The Shaykh: Yes, yes, yes, regarding the name, yes.