It is narrated from Sayyiduna Abu Hurairah (may Allah be pleased with him) that the Prophet (peace and blessings be upon him) forbade meeting trading caravans on the way before they reach the market, bidding merely to raise the price, and withholding the milk of milking animals. He also forbade that a woman demand the divorce of her (Muslim) sister, and that a man bid over the price set by his (Muslim) brother.
Hadith Referenceمسند اسحاق بن راهويه / كتاب البيوع / 445
Hadith Takhrij«بخاري ، كتاب الشروط ، باب الشروط فى الطلاق ، رقم : 2727 . مسلم ، كتاب البيوع ، باب تحريم بيع الرجل على بيع اخيه الخ ، رقم : 1515 . سنن نسائي ، رقم : 4502 .»
Explanation & Benefits
Hafiz Abdush Shakoor Tirmidhi
Benefits: From the aforementioned hadith, it is understood that bidding merely to increase the price is not permissible. This is when a person does not actually intend to purchase the item himself, but bids in order to entrap others and incite them. Such individuals are in collusion with the seller, and both are equally partners in the sin. Sometimes, it happens that the seller is unaware; in such a case, the one placing the false bid alone will bear the sin. (For further details, see Fath al-Bari: 5/90; Tuhfat al-Ahwadhi: 4/604. For a complete explanation of the aforementioned hadith, see Hadith wa Sharh: 155–161.)