Praise be to Allah.
What is required of the believer is not to deceive people; rather he should work out the appropriate price that does not cause harm to people. If the price of one hundred and fifty for the watches is the going rate for such items, but the vendor gives a discount to someone because he insists on a lower price, or because he is a friend or relative, there is nothing wrong with that, because he is giving a discount to some friends and selling it for less than the usual price, and there is nothing wrong with that.
But if he cheats people, meaning that if he sees someone who is not aggressive in bargaining and is unaware of the prices, so he charges him more, and if he sees someone who is smart and knows about the prices, he charges him the usual price, this is not permissible. Rather he should care for the one who is unaware of prices as much as he cares for the other, so he should sell it at a reasonable price to everyone, and not cheat anyone or betray anyone’s trust. He should sell at the usual price that he sells to all people, so that he will not be cheating anyone, and if he gives a discount to some people who are close to him, or to some of his friends or relatives, or he gives it as a gift for free, there is nothing wrong with that, and it is up to him.
But he should not target the ignorant and those who are unaware of prices, selling it to them for a higher price. Rather his prices should be the same as those charged by others, whether the customer is smart or not. This is what is required of him. As for giving a discount to some people, there is nothing wrong with that. End quote.