Answer
In the Name of Allah, Most Gracious, Most Merciful.
All praise and thanks are due to Allah, and peace and blessings be upon His Messenger.
In this fatwa:
There is nothing in the Shariah that prevents giving commission to solicitors of business, as long as it is known to the person on the other side of the transaction.
In his response to your question, Prof. Dr. Monzer Kahf, Professor of Islamic Finance and Economics at Qatar Faculty of Islamic Studies, states:
The practice of chain pyramidal commission is permissible provided there is full disclosure, i.e., all TCO’s down the line know the structure of commission and know that the prices they are charged include all these commission up to the top of the pyramid.
There is nothing in the Shari`ah that prevents giving commission to solicitors of business, as long as it is known to the person on the other side of the transaction.
If there is no full disclosure, it may become similar to bribes or at least cheating.
Remember that sale of gold and golden jewelry must always be in cash (hand to hand) as the Prophet (peace be upon him) instructed.
? Read Also: Is Getting Paid Commission on Referrals Permitted In Islam?
Almighty Allah knows best.
Editor’s note: This fatwa is from Ask the Scholar’s archive and was originally published at an earlier date.