The General President for the Administrations of Scientific Researches, Religious Verdicts, Preaching and Guidance

The ruling on presenting Gifts to those who purchase a specified Value of Goods in order to attract a larger Number of Customers.

All praise is due to Allâh and blessings and peace be upon His Messenger, his family and his Companions. To proceed:

The Permanent Committee for Scientific Researches and Religious Verdicts has reviewed the question that was sent to the Presidency of Scientific Researches, Religious Verdicts, Preaching and Guidance. The question states:

"I have a shop in the market for selling fragrance oils, luxury items and hand bags, and I wanted to increase the sales of my shop by giving some gifts to the buyers. The procedure will be as follows: If the customer buys whatever is valued at 200 riyals from the store he draws a card and gets a gift that is written on the inside of the card. If he buys something for 400 riyals, he gets two cards and two gifts and so forth. In reference to the gifts, they vary. Some of them are valuable, which are few in number, and some of them are moderate in value, which are moderate in number. And then there are gifts that are 10% of the value of the purchased item, meaning that which has a value of 20 riyals or more, and these will be of a large percentage of the gifts. This means that the customer will get a gift that will definitely be written inside the card, but the value of the gifts will differ. He may either get a tape recorder or an air conditioner or a television or a cigarette lighter or a bottle of fragrance oil and so forth. For this reason luck plays a large part in this. In reference to the products that are sold during the days of distribution, the gifts are sold at their prices during the normal days and their price is not increased. Nothing is discounted from their prices. The gifts are limited to the customers who are buying retail items and the wholesale customer is not allowed to enter into this offer, because the store has some customers that buy from the wholesale section. Also, the employees of the store have no right to draw a card from these cards. Likewise, whoever supervises its organization cannot enter, if we want to announce it in the local newspapers and place an announcement on the door of the store to attract the attention of the customers. I hope for an answer to this question of mine from your eminence and that you direct me to what contains benefit for me in my religion and my worldly affairs. May Allâh protect you.'

The Committee answered as follows:

If the matter is like what has been mentioned, and the person calls what he gives to the buyers 'gifts' in this organized system, then that is forbidden. This is due to what it contains of gambling in order to promote the product and increase the principal wealth by numerous sales. It makes no difference if the prices at which the product is sold is a normal price. This is also due to what this contains of harm for the other businessmen, unless they practice the same method. Thus, in that is a temptation to practice gambling for the sake of promoting business and increasing earnings. Then, what follows this is hatred and kindling the fire of enmity, dislike and devouring the wealth in falsehood. This is because some person will buy something for 200 riyals and his fortune in his drawn card will bring him a tape player or an air conditioner, and another person will buy the same value of goods and his fortune in the pulled card will be a lighter or a bottle of fragrance oil that is only worth 10 riyals or 20 riyals, for example.

May Allah send blessings and peace upon our Prophet Muhammad, his family and his Companions.

Source:
The Permanent Committee
Fatawa Islamiyah, Vol. 4 Pages 419-420-421