The alternative isn’t controlling how people use chatbots on their own machines. It’s limiting corporations from profiting off of chatbots that use another person’s likeness.
You don’t need to jump to assuming regulations would have to control what you do on your computer specifically.
Not everyone has access to the financial education that teaches you how bad this is. I see so many people that don’t actually understand how credit cards work because they “just got one” after signing up for a rewards program (basically, got scammed into signing up).