Publication:
Potential Shariah Non-Compliance Practices in E-Bidding: Observation from E-Bidding Platforms in Malaysia

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Abstract

E-bidding has gained popularity in modern world due to the advancement of technology. Despite its popularity, contracting parties are exposed to Shari’ah non-compliance practices which might lead to financial loss and dispute among contracting parties. Islamic jurisprudence provides guideline that may assist bidders and auctioneers to avoid these practices. This study aims to examine e bidding platforms in Malaysia and highlight potential Shari’ah non-compliance issues based on guideline offered by Islamic jurisprudence. This study employs qualitative data analysis method. Data are collected from the e-bidding platforms and its published documents which then are analyzed using content analysis. The findings revealed several potential Shari’ah non compliance practices in e-bidding platforms, among others are, unverified bidders, uncertainty, riba, gambling and unavailability of khiyar (option). Numbers of improvement are suggested to enhance procedures of e-bidding platform so that it will not lead to financial losses and dispute among contracting parties. Keywords: bidding; online bidding; electronic bidding; auction; online auction; electronic auction; Shari’ah non-compliance

Description

3rd INTERNATIONAL HALAL MANAGEMENT CONFERENCE (3rd IHMC 2021) “Sustainability and Empowerment of Halal Industry in The Midst of COVID19-Pandemic” Date: 23rd – 24th August 2021, Malaysia eISBN: 978-967-440-956-2 Organised by : Faculty of Economy and Muamalat, USIM

Keywords

bidding; online bidding;, electronic bidding;, auction;, online auction;, electronic auction;, Shari’ah non-compliance

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