Trade

Joining a buying group that charges a monthly fee

Q: Please advise regarding below: 

There is a group/consortium that allows you to join them for an admin fee of R1000 a month. 

The benefit of joining them is that once you are affiliated with them, you get extra discounts from the suppliers with whom they have negotiated better rates for all those who are affiliated with them. 

Thus, when I go to any supplier, I just need to mention to him that I am part of this group, and they will give me a 5% or 10% discount due to me being a member of the group. 

The benefit of a member is that the group has better buying power and can negotiate better rates which later assist the members of the group. 

Besides these discounts negotiated on behalf of the group, they do not provide advertising or any other services to any of the members. Is this arrangement permissible?

Using pirated software

Q: If a person used to use pirated software of Microsoft packages such as Word and PowerPoint and he used to use Adobe pirated software which he downloaded from pirate bay or so, does he have to pay any company now or owe anything?

Charging handling fees on items returned

Q: Is it Islamically permissible to:

1. To charge a general 15% handling fee for all returns for admin & transportation costs. Example, the seller is in Durban and the buyer is in Johannesburg or Cape Town. The seller incurred admin & transport costs to get the goods delivered & will incur costs to get the goods returned. There could be various reasons for the returns - incorrect goods supplied, excess stock bought, damaged goods received, buyer cannot sell the goods etc. 

2. If there is a price dispute between the seller & the buyer for goods supplied, can the seller write off the disputed amount as a donation? 

Note: The sales rep quoted the buyer a price and the admin office charged a higher price. When the buyer received the invoice, he queried the price & refused to make payment until he is charged the quoted price.

Selling animals for fighting

Q: For animals used in fighting such as roosters and dogs, their price depends on their fighting ability. If a rooster/dog is an excellent fighter, it would be expensive. So is it halaal to include the price of an animal's fighting ability in the overall price of the animal? Would the amount added to the price based on the fighting ability be halaal?

Selling items using the odd pricing strategy and not giving change

Q: There's a trend among large retailers of using a marketing strategy called odd pricing, eg. $4.99, instead of $5. This is based on the psychological trickery of making a price more appealing. Muslim informal traders have now adopted this same strategy.

Firstly: Is this allowed, considering the origin and deceitful nature.

Secondly: These Muslim traders accept the full amount of $5. Unlike the large retailers, who give your change, the Muslim traders offer no change to the customer. This price is sometimes $199, and when accepting $200, no change is offered. Is this permissible? Surely, this is a form of stealing. At the very least, trickery.

When called out, they offer 'Urf as an excuse, saying this is the general usage in a community. However, the retailers who use this strategy gives the customer his due change. So it does not equate to the same.