Arabic (غبن فاحش) for an excessive profiteering- a type of ghabn– 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, the seller is actually charging 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 ghabn fahish the option (khiyar) to revoke the sale and redeem the price paid (this option is termed “khiyar al-ghabn“).
