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Search Fatawaa

Subject : Islamic Ruling on Marketing Products through a Competition

Fatwa Number : 3833

Date : 23-11-2023

Classified : "Hibaa"Donation, Grant

Fatwa Type : Search Fatawaa

Question :

A company sells food products and wants to market them through a competition. This competition involves placing vouchers (coupons) inside a certain number of products. After purchase, the customer who finds a voucher inside the product wins an immediate cash prize or a free quantity of the product itself. In light of the teachings of Islamic Law, is this permissible?

The Answer :

All perfect praise be to Allah the Lord of the Worlds. May His peace and blessings be upon our Prophet Mohammad and upon all his family and companions.

The prizes offered by institutions to encourage purchases take the ruling of gifts and are considered permissible if the following conditions are met:

First: The buyer should not intend the purchase solely for participating in the competition without needing the purchased item itself. Rather, the purchase should be intended for the product itself.

Second: The buyer should not purchase products at a price higher than their market value. Excess in price would be considered payment for participating in the prize draw, making it a form of gambling. This is because prizes are originally intended as gifts offered by the selling party through a lottery to encourage purchases without consumers bearing any financial cost. Resolution No. (47) issued by the Jordanian Iftaa Council stated the following : "The price of the product for the draw should not exceed the original price. This is to avoid any payment for participation in the draw."

Third: There should be no deception or manipulation of customers through these gifts, such as using them as a means to promote spoiled goods or raising prices in exchange for them. Resolution No. (127/1/14) issued by the Islamic Fiqh Academy affiliated with the Organization of Islamic Cooperation stated the following: "The providers of prizes can benefit from promoting their products through legitimate competitions, on the condition that the value of the prizes is not deducted from the participants and that there is no deception or betrayal of customers in the promotion." And Allah the Almighty knows best.



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