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Here's one example of Facebook adjusting its algorithm several years ago. You can remark that it ought to do more, and I may agree with you, but that's totally different from saying it doesn't do anything positive. https://www.washingtonpost.com/technology/interactive/2021/how-facebook-algorithm-works/
If your argument is that there can be drawbacks to using social media, I think everyone agrees. But remember, we were told horror stories about pinball, pool, comic books, chewing gum, Dungeons and Dragons, the list goes on and on. So with that in mind, I hope you can understand why I'm not convinced by a few studies that social media is net negative in value.
And the reason we have laws requiring careful drug testing is because of damage that was done in the past, proven damage that actually happened, people whose lives ended short because they were doing things like imbibing radioactive chemicals. Your suggestion that we ought to treat social media the same is putting the cart before the horse. The burden of proof is on you, not on social media companies.
I think we ultimately have different beliefs about how things should work. I think companies should prove their products are safe, you think things should be allowed unless you can prove it's not safe.
I get it, and I think it's OK to have different opinions on this.