The Jurisprudential and Legal Characterization of Contemporary Forms of Najsh in Online Auctions and Digital Transactions

Abstract

This study examines the Islamic jurisprudential and legal characterization of Najash and price manipulation in electronic auctions and digital transactions. It focuses on the use of pseudonymous accounts, automated bidding, and fraudulent ratings to influence bidding and distort genuine competition. The study adopts an inductive, analytical, and comparative approach by examining the Islamic jurisprudential rules governing Najash, fraud, and deceit, and comparing them with contemporary forms of digital manipulation and relevant legal provisions, particularly under Iraqi legislation. The study finds that shill bidding, proxy probing, bid shielding, and fraudulent rating practices share the essential features of Najash and involve prohibited fraud and deceit under Islamic law, while potentially giving rise to legal liability depending on the nature and consequences of the conduct. It further concludes that a contract affected by digital Najash does not necessarily become void, but the defrauded buyer may have the right to rescind or uphold the contract under the relevant rules of fraud and price disparity, thereby supporting the objective of wealth preservation and protecting genuine contractual consent and market integrity.