Are auctions permissible? Is there a religious drawback to buying a product in auction on the internet? Is the money paid in order to join the auction halal?
Submitted by on Tue, 28/02/2017 - 10:11
Dear Brother / Sister,
Auction is a kind of sale that has two types. One of them was applied by the Prophet (pbuh) himself and the other was forbidden.
According to what is narrated from Anas b. Malik, somebody from Ansar came to Hz. Muhammed (pbuh) and begged something from him. Hz. Prophet (pbuh) asked him, "Do you not have anything in your house?" The man said he had some sackcloth and a container. Upon the order of the Prophet (pbuh), the man fetched them. The Messenger of Allah (pbuh) held the sackcloth and the container and said, "Who will buy them?" One of the Companions said, "I will buy them for one dirham." The Prophet (pbuh) said two or three times, "Who will increase it? Anyone who wants to increase?" Another Companion said he would buy them for two dirhams. The Prophet (pbuh) sold them to him and gave the money to the Ansari, telling him to buy food with some of the money and to buy an axe with some of it, and to bring the axe to him. When the man brought the axe, the Prophet (pbuh) fixed a handle on it with his own hands and told him to cut wood and sell it in the market. He said gaining money like this was better than begging. (Abu Dawud, Zakah, 26)
As it is seen in the hadith, Hz. Muhammad (pbuh) adopted the sale by auction and applied it.
If the money given or taken for the auction is related to registration and expenses, it is permissible.
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