Question
Is it permissible in Islam to practice price discrimination? Is it halaal to charge a different price for a similar product, if the price discrimination is based on the customer ability to pay? (for example a business customer is charged higher than a residential customer; or customer from developed nation is charged higher than those from less developed nation).
Answer
There is nothing in the directives of the Qur’an and the Sunnah of the Prophet (pbuh), which renders any price discrimination to be prohibited. The only exception would be where such price discrimination violates any accepted moral principles or ethical norms.
22nd June 2000