What is the ruling on purchasing products from companies that place coupons on goods containing prize draws?
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The questioner : In the name of Allah, the Most Gracious, the Most Merciful.
Praise be to Allah, Lord of the worlds, and peace and blessings be upon His trustworthy Messenger.
Shaykh, in the State of Kuwait, there are now various types of sales prevalent. The merchant displays his goods and uses enticing methods to purchase these goods. He distributes coupons for a draw for a prize provided by this merchant, and each person gets a coupon according to the value of their purchases. Whoever buys for ten gets one coupon, and whoever buys for twenty dinars gets two coupons, and so on.
The Shaykh : Yes.
The questioner : So every buyer takes a coupon, and then a draw is held afterwards, and the one whose name comes out wins the prize. What is the ruling on this type of sale? May Allah reward you with good.
The Shaykh : Yes, this is a type of sale in which we address both the seller and the buyer. So we say to the seller: Do you raise the price of the item for the sake of this prize, or not?
If he raises the price, then it is not permissible, because if he raises the price and people buy from him, they become either losers or winners, meaning: either gaining or losing. For example, this item in the market is worth ten, but he makes it twelve for the sake of the prize. This is not permissible, because the buyer for twelve either loses the amount over ten or wins multiples. So this falls under the category of gambling and prohibited betting. This is one point.
So if the seller says: I sell at the market price, I do not increase or decrease, we now turn to the buyer and say: Did you buy this item because you need it, and that you would buy it whether there is a prize or not, or did you buy it solely for the sake of the prize?
If he says the former, we say: There is nothing wrong with buying from this one or that one, because as long as the price is like the market price and you are buying for a need, you are either a winner or safe, and there is nothing wrong with it.
And as for if he says: No, I buy and I do not want the item and I have no interest in it, but I buy in case I get the prize, we say: This is wasting money.
Praise be to Allah, Lord of the worlds, and peace and blessings be upon His trustworthy Messenger.
Shaykh, in the State of Kuwait, there are now various types of sales prevalent. The merchant displays his goods and uses enticing methods to purchase these goods. He distributes coupons for a draw for a prize provided by this merchant, and each person gets a coupon according to the value of their purchases. Whoever buys for ten gets one coupon, and whoever buys for twenty dinars gets two coupons, and so on.
The Shaykh : Yes.
The questioner : So every buyer takes a coupon, and then a draw is held afterwards, and the one whose name comes out wins the prize. What is the ruling on this type of sale? May Allah reward you with good.
The Shaykh : Yes, this is a type of sale in which we address both the seller and the buyer. So we say to the seller: Do you raise the price of the item for the sake of this prize, or not?
If he raises the price, then it is not permissible, because if he raises the price and people buy from him, they become either losers or winners, meaning: either gaining or losing. For example, this item in the market is worth ten, but he makes it twelve for the sake of the prize. This is not permissible, because the buyer for twelve either loses the amount over ten or wins multiples. So this falls under the category of gambling and prohibited betting. This is one point.
So if the seller says: I sell at the market price, I do not increase or decrease, we now turn to the buyer and say: Did you buy this item because you need it, and that you would buy it whether there is a prize or not, or did you buy it solely for the sake of the prize?
If he says the former, we say: There is nothing wrong with buying from this one or that one, because as long as the price is like the market price and you are buying for a need, you are either a winner or safe, and there is nothing wrong with it.
And as for if he says: No, I buy and I do not want the item and I have no interest in it, but I buy in case I get the prize, we say: This is wasting money.