An excessive profiteering in which the seller intentionally deceives the buyer by stating explicitly or implicitly that the sale price of the underlying commodity is the real market price. However, in this situation the seller does actually charge an exorbitant price, whereby exploiting the lack of knowledge (the state of asymmetric information) on the part of the buyer. Shari’a gives a buyer exposed to ghobn fahish the option to revoke the sale and redeem the price (thaman) paid (this option is termed “khiyar al-ghobn“.
May 31, 2024
