During that time period it engaged in illegal activities such as dumping, as well as price and output manipulation with the goal of taking control over the Japanese and American TV markets.
The formation of keiretsu, enabled manufacturers to enter into collusion with distribution companies by fixing the price of the product at an artificially low level, while the distributors' losses were secretly refunded through a system of rebates.
An investigation by the Fair Trade Commission of Japan (FTCJ) uncovered a series of monthly, clandestine meetings, conducted by the higher management echelons of the industry over a period of 15 years.
Despite the findings the FTCJ did not impose major fines or structural adjustments to those involved until the Matsushita Electric Industrial Co. v. Zenith Radio Corp. lawsuit was launched in the United States in 1985.
The U.S. Federal agencies such as the International Trade Commission conducted dozens of investigations, resulting in the Japanese-American Orderly Marketing Agreement, which limited the import of Japanese TV sets.
In April 1980, the companies involved in the cartel were ordered to pay $66 million; however the collection of the fine was delayed for a significant time period as litigation continued.