Abstract

Sales of products through the concept of Multi-Level Marketing (MLM) is a new form of business that is growing rapidly in Malaysia now. The business of the Malaysian population drastic response, including the Muslims. Nevertheless there are some aspects that often cause confusion and doubt in the business, especially in terms of adherence to Sharia. Among the aspects that need to be emphasized to ensure MLM companies operate on a Shariah platform is to examine the type of contract used. Each contract is recognized in Islamic Muamalat contains the pillars and the conditions that must be complied with. Violation of rules and conditions that have been set will cause the business carried invalid or void thereby making the non-compliant businesses. Between the concepts of contracts in the MLM business that need attention is the relationship between MLM companies and distributors (members), distributors (members) and the buyer, pegedar old (upline) and distributors (downline), salaries, bonuses and setting membership fees. In general, the application includes several types of MLM business like a business contract of al-Bai‘ (sale), al-Wakalah (business representative), al-Ijarah (leasing) and al-Ju‘alah (promise of wages). Writing is only focusing on the concept of al-Ju‘alah contract that is embedded in the MLM business. This article will detail the pillars and conditions that must be adhered to by all parties involved in the contract of al-Ju‘alah. This article will also try to identify common violations committed by MLM companies on the pillars and conditions of the contract. Finally, this paper suggests the parties involved in an MLM company in the country to implement the concept of MLM business through the application of Shariah tenets and conditions of the contract which will be explained later. All parties need to be involved to ensure that business is conducted so that the provision of Shariah-compliant obtained lawful and blessed. Keywords: Multi-Level Marketing (MLM), Transactions, Akad al-Ju‘alah, Shariah-compliant.

Full Text
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