As much as people like to say there aren't rules or laws in Kusari, there are. The Emperor does not have unrestrained power, and in fact, has little power overall, probably being less powerful in actual power than the Shogun (head of the KNF) and the head of Samura. The Emperor servers as a figurehead, a physical embodiment of Kusari culture, almost a religious figure. It's that place, and the people's fervent loyalty to him, not his legal rights that give him power.
I have always rped Kusari as having a constitution, mainly because Japan has one. I believe that there are laws, and citizens rights, although probably little protection of women's rights. There are laws, they are enforced in a particularly Kusari way.
The Hogosha are well connected, and have a significant amount of respect among the populace. If they are not caught red handed, its likely they wont be prosecuted. The law in Kusari doesn't go out of its way to catch or prosecute the Hogosha or FA. This does not mean they aren't breaking the laws.
I disagree that Kusari should be described as a facist state, I have always seen it as a industrial-constitutional monarchy with endemic issues of corruption.