ANSWERED: Mobile Phones - Cash Back Schemes

[ridhwan]

Q1. I came across an article on the web stating that mobile cash-back schemes are not permissible and are a form of riba.

Cash back schemes are quite popular in Uk, basically how they work is:

When you take out a promotional offer on a given mobile package you are entitled to claim cash back. The amount is usually the difference in line rental to what you are paying

Example 1- 300 minute tariff is £35 per month. Agent price is £5 per month for the first 6 months; customer claims £25 cashback per month for the first 6 months

Example 2- 200 minute tariff is £30 per month. Agent price is FREE for the first 6 months; customer claims £30.00 cashback per month for the first 6months

Usually you will have 30 days from the date your bill is issued to claim your cash back. As soon as you receive your network phone bill, you take it ( or post ) to the agent (outlet) where you took out the contract. After necessary verification you will receive your cashback payment within 7 working days, forwarded directly into your bank account.

Q2. Also taking into account that ulema have stated the impermissibility of photography of animate things, would the sales of mobile phones that have camera and/or video recording features be permissible or not ? perhaps it is permissible on the premise that one is not responsible for anothers actions as the mobile device can be used for photography of both animate and inanimate things

Please can the ulema clarify the above. I would appreciate a quick response.

[Husain]

No problem with the schemes
Also no problem with selling cameras as they are dual purpose.

Could you please give us the link to the article stating that the cash-back schemes are impermissible

[ridhwan]

for your reply

The article can be found [clip]

Again I would appreciate a response from the scholars on the board

[ridhwan]

I queried regarding the permissibility of cash back schemes.

The reply was that the issue is currently being researched.

If anyone has any input and they can provide the name of the scholar that gave the reply and what they said I would greatly appreciate it.

[Ahmed]

all dewsbury ulema deem both o.k.
some own mobile shops
and pc shops

[ridhwan]

br Ahmed

It's just strange that you mentioned Dewsbury because I had queried the issue with Mufti Yusuf Sacha damat barakatuhu of Batley and the reply was that the issue is being researched.

It would be good if you could clarify once more with the ulema since you are local to the area. I understand that you have already mentioned that some have mobile shops but just wondering why Mufti Yusuf Sahib never gave a definitive answer.

[eat-halal guy]

I am not fully aware of how these cash-back schemes work, but from what I understand, there are actually two transactions that happen here:

1. The client purchases a product (i.e. a phone).
2. The seller offers a voluntary rebate that can be claimed after the product purchased has been used.

The client is not obliged to claim the rebate as part of the transaction. Rather, the rebate is offered as a promotional incentive. It is delayed to guarantee actual usage of the product (which is what the seller wants the client to do).

If that is what actually happens, then there are two separate transactions:

1. The actual sale of the phone.
2. A monetary reward for usage of the service.

My limited understanding does not see anything wrong with this, but I am not a mufti so please do not take my word for it.

Allah knows best.

Wassalam,
Ziad