Yes, the companies providing these products are sued a lot and are heavily regulated, too.
We let people buy kitchen knives. But because the kitchen knife companies don't have billions of dollars, we don't go after them.
We go after the LLM that might have given someone bad diet advice or made them feel sad.
Nevermind the huge marketing budget spent on making people feel inadequate, ugly, old, etc. That does way more harm than tricking an LLM into telling you you can cook with glue.