A Study of Defining Law for the Activities of an Unsound Network Marketing System

Network marketing is a sale distribution method based on profiting plans and the unsound network marketing is its deviated form. In this system, recruiting members suffices and according to the pyramidal plans that the company presents, the recruited person’s capital would be divided among the founder, the individuals on top and near the top of the pyramid, and the sponsor. Every person finds a chance to achieve a higher position in the pyramid by expanding their subsets. In this marketing, there is only one contract in the form of “payment of reward for attracting members.” The present paper concerns with an examination of the defining law for such activities and tries to analyze its permissibility or prohibition according to the Sunnī and Shī‘a arguments.