An analogous story I heard (and it could just be a rumor) was that such lack of regulation was also why the movie industry took off in LA.
The story goes that Edison had lots of patents on movie-related tech, and wanted to squeeze the movie makers and control them; so the movie makers ran off to the furthest place possible from NY (where Edison was), i.e., Los Angeles, CA. There they were free to operate without Edison and regulations.
To add a tidbit to that, a journalism professor in college taught that Hollywood become the dominant film production locale because World War I decimated film industries in Europe.
As the subtitle indicates, it has a particular focus on the early Jewish players in the movie business, but it covers all aspects along the way.
As for the decimation of the European industry, that really happened more in WWII than WWI. There's a good documentary mini-series on the early days of the Euro-industry, which ends with the WWII decline.
He write, "Los Angeles's distance from New York was also comforting to independent film producers, making it easier for them to avoid being harassed or sued by the Motion Picture Patents Company, a k a the Trust, which Thomas Edison helped create in 1909. The Trust, which included the dominant producers, distributor and film stock manufacturer, was intended to monopolize the entire industry. "
The story goes that Edison had lots of patents on movie-related tech, and wanted to squeeze the movie makers and control them; so the movie makers ran off to the furthest place possible from NY (where Edison was), i.e., Los Angeles, CA. There they were free to operate without Edison and regulations.