The Application of Shariah Principle in E-commerce Transaction: A Model Development

Muhammad, Mohd Zulkifli; Amboala, Tamrin; Salleh, Muhammad Zulfaris Mohd; Abdullah, Azwan; Tahrim, Siti Nurzahira Che; Nawi, Noorshella Che

doi:10.5430/rwe.v10n2p84

Cited by 6 publications

(7 citation statements)

References 8 publications

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“…Although e-commerce involving mobile banking is a relatively modern invention, the laws of Shariah that govern it accords it with similar inference as to the traditional way of commerce (Ribadu & Rahman, 2017). Among the essential Shariah principles for a business contract are 1) offer and acceptance; 2) contracting parties, involving a buyer and a seller; and 3) the subject matter, consisting of an object and its price (Muhammad et al, 2019). Various types of Islamic contracts are facilitated by mobile banking, ranging from Qard, which is a savings account, to repayments based on Murabaha, Musyarakah, and Ijarah.…”

Section: Literature Reviewmentioning

confidence: 99%

E-Commerce Via Mobile Banking: Contemporary Shariah Issues and Ways to Address Them

Yazid¹,

Zainol²,

Bakar³

2023

J. Professional Business Review

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Purpose: This study aims to address some of the contemporary issues and challenges concerning mobile banking via Islamic banks, specifically in e-commerce and m-commerce. Theoretical Framework: Mobile banking has made it possible for consumers to buy things online right from their pockets. With the availability of this sophisticated technology, online retailers have been swift in exploiting mobile banking for m-commerce to entice consumers into buying their products without serious considerations of ethical and halal aspects. Addressing these issues is important to address Muslim consumers’ reluctance to fully utilise the functions of mobile banking. Methodology: This study utilises a qualitative research method using virtual library and internet research. The information retrieved mainly came from academic journals, books, reports, magazines, newspapers, and websites. Findings: This study finds that most of the transactions in e-commerce are permissible in Islamic commercial law. Research Implications: This paper outlines issues such as gharar (uncertainty) and deception in e-commerce transactions and ways to address them. Among the ways to address these issues are content moderation, whether by a third party body or consumers themselves, and artificial intelligence. Another way is by applying the principle of khiyar in terms of khiyar al aib (option of defect) and khiyar al ru’yah (option of inspection). Originality/Value: By addressing these issues, it is believed that consumers will be more aware of their rights in the eyes of Islamic law, which some argue accords more justice to consumers.

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Section: Literature Reviewmentioning

confidence: 99%

E-Commerce Via Mobile Banking: Contemporary Shariah Issues and Ways to Address Them

Yazid¹,

Zainol²,

Bakar³

2023

J. Professional Business Review

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“…In recent years, Muslim consumers have been more sensitive about ensuring that halal products are supplied through e-commerce (Sharif & Ghani, 2019). It is also essential to develop a complex and distinct set of criteria that define Islamic and Shariah-compliant requirements regarding e-commerce transactions (Mohd Zulkifli et al, 2019). Because of the nature of the e-commerce system, suppliers and buyers do not meet in person, but rather communicate over the Internet.…”

Section: Emergence Of E-commercementioning

confidence: 99%

Consumer Protection Against the False Description of Halal in E-Commerce

Muhamad Nazari,

Abu Bakar,

Muhammad Arif

2023

UUMJLS

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The rapid emergence and growth of e-commerce have caused an increase in halal issues, especially with the false description of Halalin E-Commerce amongst the various online platform providers. More specifically, halal issues that need legal attention include safety issues, deceptive conduct, misleading representation, and false description. This study aims to analyse the adequacy of the Consumer Protection Act 1999 to protect consumers, especially regarding false descriptions of halal in online transactions. To achieve this objective, the approach is to adopt a qualitative research method, in which content analysis is made by comparing the consumer protection laws in force in other countries. The findings of this study revealed several challenges in applying such laws, which used ambiguous terminologies and imposed limited liabilities on online market operators. A few recommendations have been put forward, such as the interpretation of terms such as ‘consumer,’ ‘goods,’ ‘description,’ and ‘suppliers’ needs. These terminologies have to be revised, in addition to extend the liabilities of online market operators so that there will be better consumer protection for Muslims when they shop online.

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“…By understanding the contract's essential provisions, scholars were able to apply a hadith from the Prophet SAW in Sahih Bukhari's "Paid in Advance" volume. The fundamental prerequisites are defined as price offer (Ijab), acceptance (Qabul), fiat payment, ijab qabul done at the same meeting spot, identifiable products, and a delivery date [6]. The main issue that frequently emerges with contemporary e-commerce transactions is the contract's legitimacy in terms of its meeting location and ambiguity [6].…”

Section: Compliance Scope: Basic Mechanisms For Halal Transaction Com...mentioning

confidence: 99%

“…Transaction permissibility or Halal transaction is legal fiat (money) exchanges during business dealings between the owner of a Halal SME and another business partner or client, in which the entire process is known as thoyyib [2]. According to the hadith Book of Transactions and Muslim scholars, a single transaction must contain contractual parties, subject matter, form, transaction policy requirements, and system requirements to be legally bounded as permissible [3], [4], [5], [6]. Although most contemporary ecommerce systems in Malaysia have met the contractual parties and subject matter criteria, many of those systems exhibited limited fulfilment of their system requirements, transaction policy requirements, and the fundamentals of confirming a fiat's purchase source and usage.…”

Section: Introductionmentioning

confidence: 99%

Deriving Halal Transaction Compliance using Weighted Compliance Scorecard (WCS)

Setik¹,

Marjudi²,

Ahmad³

et al. 2023

IJCDS

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This study proposes a Halal transaction compliance process using Weighted Compliance Scorecard (WCS) to derive a Halal Transaction Compliance module. This study also attempts to outline the users, experts and authorities that will be implicated in its implementation. The transaction data was collected from a payment gateway provider after analyzing literature review, expert interview and central data theme to determine the variables involved in the compliance structure. The data is then aggregated and transformed before subjected to the Halal Transaction Compliance module and verified by the same group of experts. Results indicated that the proposed compliance is effective by a total average score of 4.06. However, improvements to central data theme can include investigative modules to make the variable more dynamically adaptable to real world changes. It can also include more in-depth industrial data compliance. Considerations should also be catered for international transactions and SMEs with global chains. For the purpose of this study, the user scope is limited to Malaysia Halal SME owners that use payment gateway embedded into their e-commerce website. Furthermore, the initial transaction data covers 500 of the payment gateway provider's most active users. It is suggested that future studies involve SMEs with good permissible scores to be benchmarked, so that the range of good compliance scores are gauged. They can also study the complexity of these compliance documentation for Halal supply chain transactions. This study's contribution lies in the enhancement of Malaysia's Halal transaction ecosystem, as well the development of a standardized Halal Transaction Compliance Protocol and the complexities involved in its operationalization and regulation.

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The Application of Shariah Principle in E-commerce Transaction: A Model Development

Cited by 6 publications

References 8 publications

E-Commerce Via Mobile Banking: Contemporary Shariah Issues and Ways to Address Them

E-Commerce Via Mobile Banking: Contemporary Shariah Issues and Ways to Address Them

Consumer Protection Against the False Description of Halal in E-Commerce

Deriving Halal Transaction Compliance using Weighted Compliance Scorecard (WCS)

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