Keralam’s multiplex pricing debate: SC order in 2023 permits eateries in multiplexes to fix price of foodstuff
The Kerala government cannot regulate food prices at multiplexes following a 2023 Supreme Court ruling that classifies cinema halls as private property. Despite public outcry over high snack prices, authorities are limited to ensuring food safety and correct weights.
Why it matters
This highlights the legal limitations of state intervention in private business pricing models and the ongoing tension between consumer rights and corporate autonomy.
The prices of food items sold at multiplexes would continue to be set by traders with no scope for any governmental intervention in the price-fixing mechanism.
A Supreme Court order had termed cinema halls as private properties of its owners, who were entitled to “stipulate terms and conditions so long as they are not contrary to public interest, safety and welfare.” The court also noted that the owners were entitled to “determine the business model to be followed and to regulate the terms on which such sale should take place” in K.C. Cinema vs State of Jammu and Kashmir case in 2023.
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