In many cases, yes. You cannot have an intern do any activity that would normally fall to a paid worker, if the intern is unpaid. Many companies do have internship programs where they pay interns, and are allowed to do proper work.
But why would she seek an intern at all? Why not hire someone?
Many companies do this, when they're about the bottom dollar. IE. her company is caustic and grimy, the status quo (sorry to say.)
If unpaid, paid interns can do work that generate income.