FTC FACTS for Consumers

FOR THE CONSUMER 1-877-FTC-HELP

www.ftc.gov FEDERAL TRADE COMMISSION

P rescription drugs can be a costly medical expense, especially for older people and those who are chronically ill. However, each state has a law 

that lets pharmacists substitute less expensive generic drugs for many brand-name 

products. Depending on your prescription needs, your savings could be significant. 

Before you talk with your doctor or pharmacist about switching, there are things you 

need to know about generic drugs and the law.

What’s the difference between a generic and brand-name drug?

Not much, except for name and price. A generic drug is called by its chemical name; 

a manufacturer assigns a brand name. The products have the same ingredients.

Standard practice and most state laws require that a generic drug be generically 

equivalent to its brand-name counterpart. That is, it must have the same active 

ingredients, strength, and dosage form—pill, liquid, or injection. The generic drug 

also must be therapeutically equivalent—it must be the same chemically and have the 

same medical effect.

HEALTH

Generic Drugs: 

Saving Money at the Pharmacy
Facts for Consumers

Federal Trade Commission

Bureau of Consumer Protection

Office of Consumer and Business Education

1-877-FTC-HELP FOR THE CONSUMER

FEDERAL TRADE COMMISSION www.ftc.gov

May 1998

Do all drugs have generic equivalents?

No. Some drugs are protected by patents and 

are supplied by only one company. However, 

when the patent expires, other manufacturers 

can produce its generic version. Currently, 

about half the drugs on the market are 

available in generic form.

How can I get generic drugs?

Talk with your doctor or pharmacist. Explain 

that you want the most effective drug at 

the best price. Ask your doctor to write 

prescriptions for generic drugs when possible.

Are there exceptions to the law?

Yes. If your doctor writes on the prescription 

form that a specific brand-name drug is 

required, your pharmacist must fill the 

prescription as written. That is, a generic drug 

cannot be substituted.

However, your pharmacist can talk with your 

doctor about the prescription. Perhaps there’s 

an acceptable generic drug that your doctor is 

not aware of. Your pharmacist can compare 

and evaluate generic and brand-name drugs 

and may be able to consult with your doctor 

to provide the right medication at the best 

possible price.

Will my doctor automatically prescribe 

generic drugs?

It depends on the physician. You can ask 

your doctor to write a prescription permitting 

substitution of a generic drug product when 

appropriate. You also can ask whether a 

generic product will be as effective and 

less costly. Or, you can request that only 

brand-name products be used to fill your 

prescriptions.

Where can I get more information?

The Food and Drug Administration has a tollfree hotline to answer questions about drug 

safety and efficacy. Call 1-800-532-4440. You 

also can visit the FDA at www.fda.gov—click 

on Human Drugs.

The FTC works for the consumer to prevent 

fraudulent, deceptive, and unfair business 

practices in the marketplace and to provide 

information to help consumers spot, stop, and 

avoid them. To file a complaint or to get free 

information on consumer issues, visit www.

ftc.gov or call toll-free, 1-877-FTC-HELP 

(1-877-382-4357); TTY: 1-866-653-4261. The 

FTC enters Internet, telemarketing, identity 

theft, and other fraud-related complaints into 

Consumer Sentinel, a secure, online database 

available to hundreds of civil and criminal law 

enforcement agencies in the U.S. and abroad.