What is the ruling on marketing prizes that some commercial establishments offer, where some sell contest cards?
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The questioner : In a question regarding commercial contests: Recently, certain practices have become widespread among commercial establishments, and we would like your eminence to clarify the ruling on them. These are the actions of a group of commercial establishments that offer a prize to whoever buys from their stores. The method of obtaining the prize varies from one merchant to another. Some raise the price of the goods in exchange for the prize, while obligating the purchase to obtain the contest card. Others obligate you to purchase up to a certain amount in exchange for obtaining the contest card, without raising the price.
The Shaykh : No, it does not oblige you. It says, if you wish, buy, and if you wish, do not buy. The phrasing of the question is incorrect.
The questioner : No, when intending to take the card.
The Shaykh : Yes, there is no harm, meaning he does not give it to you except for such-and-such.
The questioner : Yes, I do.
The Shaykh : There is a difference between it being obligatory for you and him not giving it to you except for such-and-such. Yes.
The questioner : Some do not raise the price and do not oblige you to purchase when taking the card, and some sell the contest card for a specific amount when one does not wish to purchase. Knowing that this will increase in this month, the blessed month of Ramadan, I ask your eminence to clarify the ruling on this issue in as much detail as possible, due to the many questioners about these forms and others. May Allah preserve you?
The Shaykh : Some of these forms you mentioned are not permissible, and some are permissible.
The permissible form is for the merchant to offer a prize to whoever buys from him for a certain amount. Let us say: whoever buys for one thousand riyals has the right to enter the contest. This is permissible, because the buyer is either safe or a winner. The price has not been raised on him, and he will buy this merchandise in any case, whether from him or from someone else. If he buys from someone else and then happens to win a prize, he is a winner, and if he does not win, he is safe.
As for if the buyer is either a winner or a debtor, this is forbidden in all its forms. But suppose that someone among the people says that this ruins the market and confuses the people, and perhaps a person will come from one end of the country to the other just to buy from this store. This may disrupt traffic, for example, especially in large cities. We see that if the state were to intervene in such matters and prohibit them, it would be good. However, if they remain as they are now, among specific individual merchants, there is no need for prohibition.
So the summary now is that we have two perspectives in this issue. The first perspective: regarding the prohibition of these people, we say: as long as the matter has not spread to a great extent that causes market disruption and merchants competing to increase the prizes, there is no harm. But if it leads to market disruption and merchants competing with prizes, such as if this one puts up a car and the second puts up two cars, or if this one puts up a thousand and the second puts up two thousand, for example, then it is obligatory for the state to prohibit it, so that manipulation does not occur.
In the case where we say it is permissible and not prohibited, we say: whoever buys while genuinely intending to buy, and no extra amount is taken from him above the price, and no price is charged for the card, there is no harm.
The Shaykh : No, it does not oblige you. It says, if you wish, buy, and if you wish, do not buy. The phrasing of the question is incorrect.
The questioner : No, when intending to take the card.
The Shaykh : Yes, there is no harm, meaning he does not give it to you except for such-and-such.
The questioner : Yes, I do.
The Shaykh : There is a difference between it being obligatory for you and him not giving it to you except for such-and-such. Yes.
The questioner : Some do not raise the price and do not oblige you to purchase when taking the card, and some sell the contest card for a specific amount when one does not wish to purchase. Knowing that this will increase in this month, the blessed month of Ramadan, I ask your eminence to clarify the ruling on this issue in as much detail as possible, due to the many questioners about these forms and others. May Allah preserve you?
The Shaykh : Some of these forms you mentioned are not permissible, and some are permissible.
The permissible form is for the merchant to offer a prize to whoever buys from him for a certain amount. Let us say: whoever buys for one thousand riyals has the right to enter the contest. This is permissible, because the buyer is either safe or a winner. The price has not been raised on him, and he will buy this merchandise in any case, whether from him or from someone else. If he buys from someone else and then happens to win a prize, he is a winner, and if he does not win, he is safe.
As for if the buyer is either a winner or a debtor, this is forbidden in all its forms. But suppose that someone among the people says that this ruins the market and confuses the people, and perhaps a person will come from one end of the country to the other just to buy from this store. This may disrupt traffic, for example, especially in large cities. We see that if the state were to intervene in such matters and prohibit them, it would be good. However, if they remain as they are now, among specific individual merchants, there is no need for prohibition.
So the summary now is that we have two perspectives in this issue. The first perspective: regarding the prohibition of these people, we say: as long as the matter has not spread to a great extent that causes market disruption and merchants competing to increase the prizes, there is no harm. But if it leads to market disruption and merchants competing with prizes, such as if this one puts up a car and the second puts up two cars, or if this one puts up a thousand and the second puts up two thousand, for example, then it is obligatory for the state to prohibit it, so that manipulation does not occur.
In the case where we say it is permissible and not prohibited, we say: whoever buys while genuinely intending to buy, and no extra amount is taken from him above the price, and no price is charged for the card, there is no harm.