Permissibility of "Buy 1 Get 1 Free" deals

Q: I wanted to know the Share'ee ruling on "Buy 1 Get 1 Free" deals that many merchants offer in their stores. 

For example, buy 1 case of water, get 1 free. Or buy 1 cellular line and get 1 free. These are offers that are conditional on a purchase of 1 item at least. They're usually incentives to get the customer to buy them for various reasons (they want to remove the item from their shelves, or it's a sales/marketing strategy, or simply a competitive deal in a free market). Is such a deal permissible for the buyer, or is this considered riba? 

Another type of deal that's similar is buying a certain quantity to get a better deal than buying 1. For example, 1kg of tomatoes is RS 50 but 2 KG is 40 (a savings of RS 10). Is such a deal permissible for the buyer?

A: Yes, this type of transaction is permissible. Since this is being proposed from the side of the seller, it will not be regarded as attaching a condition in the sale. Rather, it will be viewed as though one is purchasing two items for the price advertised. 

However, if the purchaser tells the seller, "I will only buy this item from you if you give me another item (whether the same item or another) for free as a gift", then will not be permissible as this condition is being attached in the sale from the side of the purchaser. It will be viewed as though the purchaser is attaching the condition that he will only purchase the item if he is given a gift by the seller. Hence, since this condition of receiving a gift is not part of the business transaction, it will cause the business transaction to become invalid.

And Allah Ta'ala (الله تعالى) knows best.

 

Answered by:

Mufti Zakaria Makada

Checked & Approved:

Mufti Ebrahim Salejee (Isipingo Beach)