The Application of the Khiyar al-Tadlis (Option of Deceit) Principle in Online Contracts and E-Consumer Rights

Abstract

The objective of this article is to discuss the Islamic legal mechanism which will provide an opportunity to e-consumers who have suffered losses in online transactions to revoke contracts or collect arsh (compensation). Khiyar al-Tadlis (option of deceit or misrepresentation) is an Islamic legal feature that is not found in any other legal system, as it originates from the Islamic law of contracts. This option exists in cases in which the disappointed party, i.e., an electronic consumer (e-consumer), can establish that his or her agreement to a contract was gained by the deceit or wilful misrepresentation of the other party (e-seller). Khiyar (option) means the authority to revoke the contract, and tadlis (misrepresentation) means to deceive the other party. This option is applied to maintain a balance in online contracts and to protect e-consumers from being deceived. This paper explores the legal protection of e-consumers’ rights in online contracts through the application of the Islamic legal principle of Khiyar al-Tadlis. The paper scrutinises this Islamic principle by considering Iranian laws and European laws as a point of reference.

DOI: 10.5901/mjss.2015.v6n4p155