Al-Muqana`ah (Bidders'' collusion

Q 24: Sometimes when auctioning commodities, it is noticed that some people gesture in between to stop bidding in order to buy the commodities at a lower price. This gesture (Part No. 13; Page No. 116) is meant to tell the other person to stop bidding and that if he lets the first person buy the commodities, he will share them with him. What is the ruling on that? Should the intention, in this case, be made before or during the auction?

A: This behavior is not permissible because it causes harm to the seller and deceives him, which may lead to taking the commodity at a price that is less than its real value. If it is proved that the seller has been deceived and has not been treated in the correct way, he has the option of either continuing with the transaction or canceling it along with taking the commodity back and repaying the price. May Allah grant us success. May peace and blessings be upon our Prophet Muhammad, his family, and Companions.