Bidding the price of commodities

Q 4: Some people attend auctions that are held for the sale of some commodities or goods and outbid for them while they have no intention of buying anything. What is the ruling on them?

A: It is unlawful for someone to outbid for a commodity which he has no intention to buy. This is so because it involves drawing the competitors into deceit because in such case the competitors outbid for the commodity thinking that it is worth paying the high price (Part No. 13; Page No. 120) while indeed it is not. This practice is itself the Najsh (an illegal transaction in which the buyer is ensnared by artificial outbidding of a fake buyer) which the Messenger of Allah (peace be upon him) prohibited. This is mentioned in a Hadith reported by Ibn `Umar (may Allah be pleased with him) who said: The Messenger of Allah (peace be upon him) forbade the practice of Al-Najsh. It is also reported on the authority of Abu Hurayrah that the Messenger of Allah (peace be upon him) said: Do not go to meet the caravans on the way (for buying their goods without letting them know the market price); do not urge buyers to cancel their purchases to sell them (your own goods) yourselves, do not bid against one another, and a town dweller should not sell the goods of a desert dweller on behalf of the latter. (Agreed upon by Al-Bukhari and Muslim). If there is a proof that a transaction involves Najsh or the sale involves some kind of deceit which is conventionally refused, then it is up to the purchaser who may either accept it or cancel it because in this case he has the right of Khiyar Al-Ghabn (option of deception).