Even if the companies could be regulated, the root of the problem would still exist. Those students who are likely to use term papers they acquired on-line are those students who are uninspired, unscrupulous, uninterested in their classes, don't know how to manage their time or, perhaps, don't know how to write a paper. As long as these students are here, their will always be problems. Some of the problems that these students have could be fixed at the university level. Counselors try to ensure that students take classes that they are interested in.
Free help is available for students who are having trouble writing papers.
But none of these steps should be necessary. Students who can't meet the basic requirements to succeed at the university shouldn't be here. Coming into the university, students should have some idea of what they are interested in. People who have spent 12 years in the educational system and still can't write a coherent paragraph have more problems than even the best tutor can solve. And that's the point.