That’s the old, more noble form of internships.
Lots of companies now just bring in a slew of fresh interns every few months to be their free, low-skill labor force. It’s part of an ugly business model and once some companies in a market practice it it is prohibitively expensive for their competitors not to.
Coming up with more government regulations and rules against internships is just more government solution in search of a problem. The type of work that most interns do in companies is menial, necessary work that adds little or no value but is needed in order for operations to flow. Having interns do this work (whether modestly paid or not) while they get a chance to learn about the company and the industry is beneficial to both the company and the intern or there would not be a market for these positions.
At my company, interns are paid a modest wage, but the interns (who pretty much have to be top-notch college upperclassmen with a GPA of 3.5 or higher) consider the experience to be invaluable for the skills they learn and the insights into the industry they gain.
Perhaps you believe that the government isn't doing enough to regulate internships and that the government is better at looking out for these young students and future workforce contributers than the free market. If so, then by all means get out there and lobby and campaing for expanded government regulation in the labor market.