SHARI'AH COMPLIANCE OF E-COMMERCE TRANSACTIONS ON THE SHOPEE ONLINE SHOPPING PLATFORM FROM AN ISLAMIC FINANCE PERSPECTIVE

Abstract

This paper elucidates electronic shopping transactions by examining the electronic marketing platform “Shopee” and its associated financial service, “SPayLater”, widely used by numerous consumers in Southeast Asia, presenting the principal Shari'ah (Islamic law) directives and rulings in evaluating the transactions of the platform and application by employing an analytical descriptive methodology. This research produced several significant findings, including the necessity of refraining from dealing with suspicious platforms and ceasing to transfer funds through them. Evidently, some transactions carried out by the Shopee platform do more harm than good and do not align with Shari'ah rules. Moreover, many Muslim users question the legitimacy of their dealings with the platform from the perspective of Shari'ah, concerned about whether these transactions comply with Shari'ah principles and rulings and whether they entail any suspicious practices related to fraud, usury, deceit, or interest. This research paper addresses these concerns, highlighting how users of these electronic platforms fall victim to certain practices and transactions deemed impermissible according to Shari'ah principles and rules. The negative impact of these practices on customers begins from the initial registration on the site, which pressures users to activate their profile and make purchases. This paper suggests that supervisory and regulatory authorities in Islamic countries, especially those where these electronic marketing platforms operate, should establish regulations and terms that are consistent with Shari'ah principles and rules, and that media entities and consumer protection associations should strive to raise awareness of and caution against practices conducted by these marketing platforms that violate Shari'ah.