Selling items using the odd pricing strategy and not giving change

· 10 Dhuʻl-Qiʻdah 1445 AH1 min readEnglish
Business and DealingsTradeValid & Invalid transactions

Question

There's a trend among large retailers of using a marketing strategy called odd pricing, eg. $4.99, instead of $5. This is based on the psychological trickery of making a price more appealing. Muslim informal traders have now adopted this same strategy.

Firstly: Is this allowed, considering the origin and deceitful nature.

Secondly: These Muslim traders accept the full amount of $5. Unlike the large retailers, who give your change, the Muslim traders offer no change to the customer. This price is sometimes $199, and when accepting $200, no change is offered. Is this permissible? Surely, this is a form of stealing. At the very least, trickery.

When called out, they offer 'Urf as an excuse, saying this is the general usage in a community. However, the retailers who use this strategy gives the customer his due change. So it does not equate to the same.

Answer

What you have mentioned is correct. If they are not going to give the change, then they should rather say that they are selling it for $5.

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

Answered by
Mufti Zakaria Makada
Checked & approved by
Mufti Ebrahim Salejee (Isipingo Beach)
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