Shariah Compliant Multi Level Marketing: Issues And Recommendations

Abstract: Multi Level Marketing (MLM) is a new concept in Islamic transaction. However, from the aspect of consumerism, various issues have arisen. Hence, there is a need of requiring correct approaches and immediate solutions to resolve these issues. Be that as it may, Islam as a comprehensive religion has the solution on all aspects of life, including matters of MLM. This paper will focus on controversial syariah issues regarding MLM such as having two akads in one transaction, excessive pricing, bonus and others. It would also provide guidelines on contemporary Islamic muamalat system, thus assisting future Muslim consumers in differentiating, as well as choosing MLM products that are shariah compliant. Recommendations of a Shariah compliant MLM model would also be included in this paper.

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