Educational content only. We analyze pricing strategies
using the principles of
Musawamah (Bargaining) and Ghabn (Deceptive Overcharging).
This is not financial, legal, or religious advice. Please consult a qualified
scholar or professional for your specific situation. We do not issue fatwas.
Why does a flight cost £50 on Tuesday and £500 on Friday? Why do students get 10% off? Price discrimination—charging different people different prices for the same thing—is the engine of modern capitalism. But is it fair?
Scholarly consensus overview
In general, a seller has the right to set whatever price they wish, provided there is no fraud (Tadlis) or hoarding (Ihtikar).
Therefore, charging different prices to different segments is Permissible. However, exploiting a specific buyer's ignorance to charge an absurdly high price (Ghabn Fuhish) is considered sinful and gives the buyer the right to annul the sale in some schools of thoughts.
Justice (Adl) in Pricing
Islam does not strictly impose a "One Price for All" rule. The Prophet (SAW) engaged in haggling, implying that the final price could vary per transaction.
Tool 1: Discrimination Assessor
The reason for the price difference matters.
Dynamic & Surge Pricing
Uber pricing or Airline tickets change by the minute. This is based on Supply and Demand.
Islamic economists generally view this as Halal. The price is transparently displayed before you book. You have the choice to accept or reject. It reflects the scarcity of the service at that moment.
Tool 2: Market Norm Checker
Normality is a key factor in Fiqh (jurisprudence).
The Requirement of Transparency
The 'Sin' usually creeps in via Deception. If you use tracking cookies to show a Mac user a higher price than a PC user secretly, you are engaging in deception.
Tool 3: Transparency Checklist
Keep it clean.
The Red Line
Where do scholars draw the line?
- 1Ghabn Fuhish (Excessive Loss):
If you charge someone £500 for a pen worth £5 because they are a tourist and don't know the currency, this is Haram. It is taking wealth unjustly.
- 2Necessities during Crisis:
Price gouging on food or medicine during a disaster is strictly prohibited (Ihtikar). You cannot profit from people's survival needs.
Summary & Practical Guidance
- Offer Compassion: If you vary inequality, vary it in favour of the poor (Discounts) rather than punishing the rich.
- Be Open: "Surge Pricing in Effect" is an honest label. Hiding the surge is dishonest.
Methodology
Analyzing Market Pricing
We studied the concept of Tas'ir (Price Fixing) in the Sunnah and the rulings on Monopoly (Ihtikar).
The general principle is Free Market (Laissez-faire) unless it causes public harm.
- Imam Ghazali (Ihya): Ethics of Trade and Pricing.
- Dr. Monzer Kahf: "Islamic Economics".