INTRODUCTION

Before 1987, there was no online business being practiced in Malaysia. Computer is used only for computation purposes and not being fully utilized. After 1997, the introduction of flagships of MSC (Malaysia Super Corridor) has led to the rapid growing of Internet that consequently improve the using of technology in all areas, including business and marketing.

Thus, Internet Marketing which is a marketing through internet covers all the traditional marketing tools such as personal selling, advertising, public relation, sales promotion, contest and sweepstakes only with a click of finger. It is a new model of business activities that brings a lot of advantages, including deduction in time and cost.

Technology is still a newborn in Malaysia. There is no exact regulation that governs the cyber space activities properly.

Thus, this paper will present in details about the Internet Marketing and Shari’ah rulings upon it. Our main concern is to develop a model of Internet Marketing based on Shari’ah principles.

In this paper, we will present the definition of Internet marketing, the practical scenario in Malaysia, issues that arise currently, as a recommendation in order to improve the existing application, including what should be done and who should be responsible, a verses that support the implementation and the conclusion of all the presented issues.

We hope, this paper will help to improve the practices of Internet marketing in

align with the Shari’ah rulings and give a clear understanding to all people about the issues. May Allah bless our effort and give us the strength in order to ensure that Shari’ah will be implemented in all area of activities in Malaysia.

DEFINITION OF INTERNET MARKETING

Internet marketing is well known term in today’s life but some people still don’t known the real meaning of the Internet marketing. Therefore, our groups try to provide some brief definition about Internet marketing. We define it word by word.

“The Internet refers to the physical network that links computers across the globe. It consists of the infrastructure of network servers and wide-area communication links between them that are used to hold and transport the vast amount of information on the Internet.”

“Marketing is the process of planning and executing the conception, pricing, promotion and distribution of ideas, goods and services to create exchanges that satisfy individual and organization goals.”

Therefore, Internet marketing means to conduct a business, to promote and sell the products that a company has to offer, give the latest information pertaining certain products to the customers and etc using digital technologies in order to achieve the marketing objectives and goal of an organization.

In order for Internet marketing to be operated, one should have PC, modem and Internet account to connect to the Internet and become part of it. When all of the above components exist, then only can the organizations operate and market their products to the customers.

In our opinion, the definition of Internet marketing according to the Shariah is similar with the conventional meaning except that is bounded by the teaching and practicing of Islam. While dealing with Internet marketing, it is forbidden for anyone to market any kind of haram or unlawful products or services. Only the halal products and services can be marketed. The dealing should not involved usury likes stated in the Holy Quran in surah Al-Baqarah verse 275.

“Trade is usury,”but God hath permitted trade and forbidden usury.”

Below we provide two examples of daily practices of Internet marketing:

Before the existence of the Internet, business used to market their products using the traditional way. That is by opening up a store and displaying the products or use direct selling or giving out brochures or etc by means of promoting or marketing their products. But now the thing has changed. Business can market their products on the Internet. Thus, enable them to reach out to more people. When there are more people being exposed to the product being marketed, it means more potential buyers. And with more buyers it will increase the sales of the business.

PRACTICAL SCENARIO

Internet Marketing has been practices in various areas in Malaysia. These implementation led to both good and bad impact. Herewith, we list four major practical scenarios in Internet Marketing that currently being used in Malaysia.

4.1 Advantages of Internet Marketing.

Since 1956, Internet has been used widely as a medium of communication. Via the Internet, messages can be seen, heard and actively interacted with, compared to other devices such as radio and television.

Internet can be accesses by anyone and anywhere in the world. According to the survey done by Net.Magazine (subjected to the African-American community as the fastest online demographic), there are approximately 8 million of the people surf the Internet.
African-American community that surf the Internet

Since Internet is a global medium of interaction and exchanging messages and information, it provides unlimited resources. People can only surf the Internet to gain for the desired information, compared to previously, they have to go to the library or do some research.

Internet can reduce operation cost and time constraint. It is enable users to purchase their desired good instantly. Previously, customer has to waste their energy and time, driving to the store that sells the particular goods or services to buy their desired good with the possibility that the good is out of stock. While Internet, ensure that customer can order or purchased their desired good with a click of finger, and it’ll deliver straight to their home.

Businessman/ Marketer People All Around the World Customer

Internet

Internet Can Be Used Widely, By Anyone and Anywhere.

Hackers in Internet Marketing.

Definition Reason

One of the problems faced by Internet marketing these days are hackers. Who

Hack into computer system and make programs if not all some awry. According to Nir Zuk, CTO, OneSecure, he defines a hacker as “intelligent engineer that can suits himself comfortably in many technical situation.”These people are the one who use their engineering and computer programming skill to break into a computer system to point out if there are any security’s vulnerabilities in the computer.

The reason behind their determination to hack a computer is maybe the challenge and the thrill they are getting from it They have to make use of their computer knowledge and skill to the optimum level. Maybe it will take those hours, days or weeks to figure out how to hack into someone’s computer system. And they will not stop until they have successfully achieved their mission. Once they have reached their goal, they can do whatever they want with the computer system. It is like a game of chess where the objective of the game is to capture the king. Not only you have to know how to play, but also you must know the rules of the game and the best moves when the king is captured.

Testing the knowledge that you have is also one of the primary reasons why people hack. The knowledge that these people have in computer programs such as, UNIX, C programming, social engineering and etc that could have been used for a good cause has been misuse to hack and penetrate security’s vulnerabilities on the Internet. Kevin Mitnick, who have been put in jail for 5 years for stealing computer code from Sun Microsystem, Nokia and Motorola Corporation, in his interview with the US Senate Committee, said that his reason for hacking is just to deepen his understanding about computer system and looking for different methods to gain the source code of the telecommunication system and computer operating system. And this reason behind all of this is just to learn about the lack of security in this system.

Another reason to hack is to have the power to control. Everybody loves to be in control. With just pushing a few buttons, you could bring the computer system down or download government’s secret document. And unfortunately, the system administrator cannot detect all these activities unless the hacker gave an email notifying that the computer has been hacked. For a multinational company, such as Microsoft or Motorola, this could cause them billion of dollars loss and for a government, this could put the whole nation into chaos.

There are several ways to hack a computer. The deeper the understanding that we have about computer, computer languages and engineering, the better the hacker we would be. Sometimes we do not even need a computer. Hacking into Motorola system, said Kevin Mitnick, is just by making a pretext telephone call to Motorola’s customer service number, and within 15 to 20 minutes period, he already had the source code number and the firmware which controlled the Motorola ultra light telephone sitting at a server at Colorado.You may think, “That fast?” Yes and it is getting easier and easier since all the tools and skills can be downloaded through the Internet. There’s even websites that teaches and explain the methods and steps to hack a computer. What surprise us was that there’s even a website called “Muslim Hackers Club” which proudly state that they are Muslim hacker and will happily guide web surfers to hack computer.From what we have read in The Star, there’s an article that explain some method for hackers to hack. Some of the method explains are really easy. They can attack any devices that are connected to the Internet. To create a path for access, all a hacker need to do is to send a compact disc or plug in equipment to the network. Printers are now easier to hack since it is getting more and more advance.

In our daily life there are people out there who are trying to hack a computer, even as we speak. For example, a young man named Ahmad. He has the knowledge of c programming and some basic engineering knowledge. By just sitting in front of the computer and clicking a few buttons on the keyboard, he is able to hack, probably the IIUM website.

Does a hacker pose a threat to Internet marketing? Yes. Referring to a website, a young man by the name of Raphael Gray, age 18 years old, posted some 26000 credit card numbers that he stole from several e-commerce websites, on the internet. Imagine what he could do with all those credit card numbers? He could withdraw the money from all the account and become an instant millionaire with just a click of a button. That means that all our private information cannot be safely kept in the computer. When we want to buy something from the Internet, we have to be extra cautious on the service provider.

Another reason why Internet marketing faces a great danger from hackers is that hackers will degrade a company’s image, even a multinational company. Take Kevin Mitnick, for instance. He hacked Sun Microsystem, Nokia and Motorola Corporation. The estimated lost was nearly $300 million. This will certainly gives a bad image to the company. The public will think that these companies are not secured enough and they could not trust to put their money in these companies. It will cost them time and money to rebuild the image they have had before.

So the bottom line is how to prevent hackers from penetrating our computer system. Generally, hackers are bad people but are they really bad?. According to a poll 92% who has voted said that the government should encourage these hackers. It seems that even though they are bad at first, we could make them to work for the benefit of the government and the corporation. But think again, would you thank a burglar who broke onto your house and wake you up and say that your house isn’t safe? In our opinion, the concept of theft is the same whether you are in the real world or in cyber space.

Should the government encourage hackers?

What does Islam says about hackers? Certainly during prophet Muhammad’s time there was no Internet. But we know Islam is perfect and universal. By just quoting one ayah we can analyse it and apply it in various situations.

O ye who believe! Eat not up property among yourselves in vanities: but let there be amongst you traffic and trade by mutual goodwill

(4:29)

If we analyse this ayah and apply in the context of hackers and Internet marketing, the last line says it all, “but let there be amongst you traffic and trade by mutual goodwill”. This means that all form of trade, whether the trade is in real world or in the Internet, must have the consent of the other party. Without this consent, whatever trade you are dealing with will not be valid. This doesn’t imply in the hacker’s world. Hackers break into other people computer system without the knowledge and consent of the system administrator

4.3 Pornography in Internet Marketing

Nowadays, Internet provides the business community a new way to conduct its business, locally and internationally. Thus, the existence of Internet marketing has eliminated the problems of time and geography. This Internet marketing is the subset of the electronic business (e-business). The successful of the Internet marketing is maintain by having clear strategies, objectives and goal on their market and also by having an attractive Website.

However, some organization is having problems of maintaining the website to be attractive and up to date. The alternative way is to provide their customer with pornographic Websites.

What is pornography? Pornography origin from Greek word for porno, which means prostitutes, and the word graphic, means writing. According to definition provided by the computer pornographer, pornography means the depiction of actual sex contact and depiction of mere nudity or lascivious exhibition.

Most of the pornography websites are profit oriented although they know it is immoral to post these kinds of websites. They believe that customers will regularly visit their Websites and they can keep track on their customer more easily than before. They could also attract customers to register into their Website everyday and claimed that their services is the best and provides a lot of information on sexuality.

Nowadays, pornographic materials are easily obtained in the world and also over the Internet. All the providers argue that they have the best Website, which can help a person who maybe is having a problem in their sex life. They also claimed that it can aid normal sexual development, help dissatisfaction in sexual relationships, encourages couples to be more open about their sex life and provide sexual gratification for people who do not have sexual partners. In the other words they try to prove that their website is beneficial to all people. However, actually they are providing a lot of misleading, false and dangerous information about human sexuality, which can lead to rape, murder, child molestation and many other social destruction behaviors.

Pornography also portray woman as sex object for men, thus encourage sexual violence against women. The increase in the number of criminal and abuse toward woman is result of the existence of this immoral websites.

Kill, murder, rape, social problem and etc.

Children who is in the beginning is accidentally surfing this porno sites will become addicted to this web pages. For example, Ashraf, 12 years old, had seen the pornography web sites when he was a child. When he becomes an adult, he will keep on surfing the web pages. After certain times, he will felt dissatisfied and started to practice it. This practice will lead him to kill the victim if the victim is unwilling to do it.

Another example is the well-known case of serial killer Ted Bundy. He case was the evidence of the effect of pornography. He was once an assistance director of the Seattle Crime Prevention Advisory Committee and wrote a pamphlet about rape prevention. He was exposed to pornography as early as 12 years old. He was responsible for rape and murder of 50 young women. His last word was “What will happen as it get into the home of children who maybe unattended or unaware that they maybe a Ted Bundy”.

Both cases above illustrate the dangerous of pornography to humankind. The website provider also does not concern that children may access their websites. The Internet filter is not enough or generally fails to avoid one from accessing this website. What will happen in the future if there is no ways to avoid anyone include children from accessing the website?

In Western countries, a lot of research has been done on this topic and they found that many children and teenagers are already exposed to the pornography. Pornography should be ban because it destroyed marriage, family and individual life. It also increase the number of crimes such as rape and murder.

The existence of civil laws is not enough to overcome this problem. An example of the laws is the Children Pornography Prevention Act of 1996, which provides that people who alter pornographic images to look like children can be presented under laws. Is there any penalty or laws to who created pornographic website and suddenly be access by the children or kids? Sometimes, the innocent children with their general search for “boy, girl and etc” also can result in porno Website. Are there any laws for those who make the website easy to access by anyone including children?

The best ways is refer to our religion. All religions in this world teach their follower to become a good man. According to the Holy Quran verse 32 of surah Al Isra’, Allah said that:  

“Nor come nigh to adultery: for it is a shameful (deed) and an evil, opening the road (to other evils).”

This ayah clearly prohibits us from commit adultery or making something or action which lead to the adultery. We can say that pornography is a part of sources which each lead to adultery (zina). Thus, we must avoid it from being surfed by anyone or created by the group of people who concern more about profit than the welfare of the society.

As a Muslim who lives in Muslim country, we should try to develop one module of laws according to Shari’ah ruling to overcome this problem. We should practices it and prove that it bring peaceful to our life. Then, Shari’ah laws will become the best examples of laws in this world.

Survey by Washington Post

‘Stricter Anti-pornography Legislation’

 

Survey by Ministry of Health and Education

1998

‘Impact of Pornography via Internet’

4.4 Gambling in Internet Marketing

One of the things being marketed over the Internet today is gambling. Internet gambling can be defined as, “... a means of using the Internet to bets on casinos games, sport games, etc. Bets are usually placed through credit card account and wins or losses are paid accordingly”.

Internet gambling first paved its way through the opening of Internet Casinos, Inc (ICI) on August 18, 1995.The opening of Internet Casinos, Inc in 1995 marked the world’s first virtual online casino. Today, the number of online gambling sites has increased rapidly. The sites are marketed widely and extensively on the Internet. According to Hammond (2002), “in May of 1999, there were over 250 online casino Internet sites and 139 online sports books.” Anyone who has had the experienced to surfs the Internet would surely has seen the advertisement banner on online or Internet gambling. With the growth of the Internet, almost anyone has the ability to place his or her bets either by visiting the various Internet gambling sites or they can also place their bet on every major professional or amateur sports event anywhere in the world. The most recent phenomenon was the online betting for the World Cup football matches.

Internet gambling is a very large industry because, “estimates say that by the turn of the century, some $100 billion could be wagered online.”

The increasing amounts of online gambling sites are due to the lack of regulation concerning the things that are being marketed over the Internet. This is why such a thing occurs. Therefore, in order to curb the gambling activities on the Internet especially in Muslim countries from taking place, a Shariah model of the Internet marketing should be developed, imposed and practised. Although this may not eliminate the online gambling activities altogether but it can prevent an individual from surfing the gambling sites. Only through this can we prevent gambling from being marketed through the Internet. Allah has said in Surah Al-Maidah verse 90;

“O ye who believe! Intoxicant, and gambling (dedication of) stone and divination by arrows, or and abomination of Satan’s handiwork: eschew such (abomination) that ye may prosper.”

Clearly from the above ayah, Allah has made any form of gambling whether it is being taken place on the Internet or not is considered to be haram or unlawful. Such activities must be stopped.

A Shari’ah model of Internet marketing must be implemented so that the consequences or the social problems arising from being involved in Internet gambling can be prevented. There are a lot of crimes related incidents arise due to Internet gambling. “Making gambling more broadly available via the network threaten heightened crime, increased incidents of compulsive gambling, and cannibalised spending in other areas of the economy”. Crimes in general, go hand in hand with gambling. For an example, gamblers with an addiction problem can turn into criminals. There was an increased of approximately 42% in child abuse, 80% in domestic violence, burglaries and etcetera. “More than half of all pathological gamblers will commit felonies to pay off gambling debts, clearly financial crimes like embezzlement, check kiting, and tax envision, and credit card, loan and insurance fraud”.

Besides that, it is noted, “specifically data has shown that communities experience

100%-550% increased in the amount of addicted gamblers (www.ascusc.org). As an example, if a person, assuming his name is Ali accesses the Internet. While surfing through the Internet he came across advertisement banner advertising on Internet gambling site. Ali is curious about the site so he decided to click on the small button that will take him to that particular gambling site. After the site’s homepage appeared on Ali’s screen, he read through all the information the site has to offer and how easy it is to gamble or place a bet online. Out of curiosity Ali decided to give it a try at placing a bet on that site through the many games that the site has to offer. After a few minutes he had placed his bet through his credit card account, Ali found out that he had won the bet and his money now is twice the amount than he had earlier. This made him want to gamble more. It doesn’t matter if he loses the bet occasionally; it’s the feeling of winning the bets that’s got him hooked. If this continues Ali will become a compulsive gambler and will be addicted to it. Besides that he may also turn into a criminal if he kept losing his bets and more over if the amount he wagered is big. In order to pay off his debts he might commit robbery or worse if his faith in Allah is not strong he might commit suicide in order to solve his problems. From the example we can see that gambling doesn’t give us any benefit even if at first we can double our money but later it will lead to more serious problems such as mentioned above. Therefore, by making gambling widely available to everyone with a computer and modem, and making it available in people’s living room will clearly draw out much of this latent addiction.

Clearly Internet gambling brings more harm to the individual that is associated to it. Besides that, the marketing of gambling on the Internet can also lead to the social decadence among children due to the unlimited access to the Internet sites.

One of the only ways to prevent such activities is to be able to used Shari’ah principle in the marketing on http//:www.free the Internet.

RECOMMENDATIONS

What should be done?

It is suggested that Malaysia should start to regulate a law that covers all the practice of Internet Marketing. For an example, during FIFA World Cup 2002, there is a lot of gambling being market through Internet that consequently allows the local to joint. There is no exact law according to the internet gambling in Malaysia, unless that under the Betting Act 1953,those who bet in a common betting house with a bookmarker on any premises or by any means, are committing of an offence and liable to a fine not exceeding $5000 or imprisonment not exceeding 6 months or both. Government can increase the offence being imposed to a maximum amount and period or implement the Hukum Hudud as being proposed by Kelantan State.

Hudud is ‘the limits ordained by Allah. This includes the punishment for crimes’.As a muslim, we should conduct ourselves according to the Quran and Sunnah as being said by Prophet Muhammad(s.a.w);

It can’t be argued that Hudud is the word by Allah, the rules that act as a guidance for mankind, to ensure that man as a khalifah have to organize this world accordingly. As said by Allah ;

‘I’ve created man and jinn in this world only to obey and serve me’

(Surah Dzariyyat: 56)

Allah knows beyond the man’s thinking. Every word from Allah, either through Al-Quran or saying of prophet only aims for the good. Thus, it’s a waste to oppose the Hudud from being implemented. Every punishment for crimes in Hudud will be judge thoroughly. For an example, in adolescent crime, one who commits the adolescent (if married) will have to be throwing with stone until he or she dies. While on the other hand if the offender not married, he or she will be a certain conditions being fulfilled. Hudud is not to discriminate woman but it prevents the woman from being manipulated and gives freedom to them. Also, Hudud covers all aspect of human life, including privacy and human right.

Prime Minister in his speech at ‘Wacana Pemikir Belia Islam Kebangsaan’ organized by International Islamic University Malaysia, 29 September 2002 said that Malaysia do not reject the Hudud but Malaysia not fully prepared to implement the Hudud. If Malaysia plans to practice all Shari’ah principle, then a comprehensive and well-built guideline should be well prepared.

Only with the regulatory framework, agreed by the Supreme Law (Federal Constitution) will ensure that Shari’ah can be practice in Malaysia. As Jasbant Singh quoted to the senior aide to PAS Acting President, Datuk Seri Abdul Hadi Awang , Zahari Mohamad , The Star, 6 th July 2002 : "We cannot enforce Islamic laws as the supreme law of the country unless federal legislation is amended. We have to form the federal government to be able to do that.''

To impose the new regulation will cause negative and positive responses

from citizen. If we want to implement the Hudud, we have to explain it’s significant especially towards the non-Muslims.

Regarding to the pornography and gambling marketing through Internet, these issues can be prevented only if we can produce a citizen with positive upbringing. Family factors, as the supreme influence towards the upbringing of a man should observe and practiced along with the Islamic teachings in daily life. A child, who gets the proper education, fardhu kifayah (i.e science )and fardu ain ( i.e Quran and Hadith ), receive full attention and close to his family will leads to a mature man who knows how to handle himself accordingly. Parents, nowadays, should bear in mind that a good man not only categorized by those who master in their professional skills but also one who have the wide knowledge of Islam. What we want today is a doctor that can also be a da’i (those who teach and speak about Islamic religion to invite people towards the practice of Quran and Sunnah).

Courses being teach in primary, secondary and higher educational institution should also have Shari’ah influence. As being practiced nowadays, Pendidikan Islam for Muslim and Moral for non-Muslim that being taught in primary and secondary school can lead to the better understanding of civilization. International Islamic University Malaysia itself, with it’s philosophy ‘Triple ICE’ (Integration, Islamization, Internationalization and Comprehensive Excellence) strive to produce a good student who has knowledge in both worldly and hereafter.

Professional person, such as governor and doctor should also be

educate about the important and benefit of Internet Marketing base on Shari’ah. Businessman, as the person who directly involve in the marketing areas, should be well educate of these issues. For an example, when Malaysia wants to implement the Islamic Dinar as our currency, the government have organized various seminars and conferences regarding to the issue. The latest was ‘The International Conference on Viability of The Islamic Dinar’ , organized by International Islamic University Malaysia on 19-20 th August 2002.The conference has successfully gained its objective in order to gather the professional people, from local and international, to give them the opportunity to analysis, share and discuss with each other upon the papers presented by well-prepared and selected presenter. Similarly, a conference or seminar can be organized for the improvement of the Internet Marketing applications in Malaysia . The organizer should select the best and well-prepared speaker to present their research upon the related issues.

In addition, to ensure that the implementation of Internet marketing

based on Shari’ah principle being successfully achieve, the government through local and private sector should give a proper training for the human resources. The training should cover both mechanical ( i.e how to use digital signature ) and subjective aspect ( i.e what is Digital Signature Act 1997 ).