It's really easy to exploit people when there isn't regulation of this...and even when there is.

For example, creative jobs in NYC. There's tons of illegal, unpaid internships and tons of companies who don't want to pay. I know several animators working in the industry there and often it takes them 6 months after a project to get paid and frequently studios try not to pay. I know a couple of people who have worked in the industry for 6 or more years and never been able to get a paying job.

Imagine working in an industry pulling 60+ hour weeks for 6 years and never getting paid for your work...and that's after being saddled with 200k in loan debt from an art school. There are so many people in that area willing to work for free and are used to it that it's difficult to find long-term paying work.