The Short Version
The claim is substantially accurate. DSHEA (1994) does exempt collagen supplements from FDA premarket approval and shifts the burden of proving unsafety to the FDA, which multiple peer-reviewed and medical sources confirm. However, "largely unregulated" overstates the situation: the FDA retains meaningful post-market authority including cGMP manufacturing standards, labeling enforcement, adulteration removal powers, and premarket safety review for new dietary ingredients. A more precise framing would be "largely exempt from premarket approval requirements" rather than "largely unregulated."