Justice and Transparency in Credit Sales of Household Furniture: Islamic Economic Law Perspective

Abstract

Credit-based sales of household furniture have become an important form of retail transaction because installment arrangements enable consumers to obtain relatively high-value household goods without making full cash payments. From the perspective of Islamic economic law, however, the permissibility of credit sales depends not merely on deferred payment but also on contractual certainty, price transparency, mutual consent (tarāḍin), justice (‘adl), and the absence of ribā, gharar, and unjustified harm. This study aims to examine the implementation of credit-based household furniture sales at Jaya Makmur Store, Talang Babat Village, and to analyze its conformity with the principles of Islamic economic law, particularly contractual justice and transparency. The study employed a qualitative descriptive approach within an empirical legal research design. Primary data were obtained through semi-structured interviews, direct observation, and documentation involving the store owner, employee, consumer, religious scholar, and community representative. These practices reflect tarāḍin, contractual certainty, and transparency and provide economic convenience for consumers. Nevertheless, the study identifies a critical Sharia concern regarding additional charges described as monthly “interest” of approximately 0.73%–1.5%, as well as penalties for late payment and potential repossession of goods. The Islamic legal status of these mechanisms depends on whether the additional amount constitutes a fixed selling margin determined at the outset or an increase calculated on outstanding debt or delayed payment. The study concludes that credit-based furniture sales may constitute a legitimate form of bai‘ bi al-taqsīṭ when the final price is predetermined, transparent, and mutually agreed upon, while post-contractual charges and default mechanisms require stronger safeguards to ensure justice, prevent ribā and gharar, and protect both contracting parties.