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Ever since the Food and Drug Administration (FDA) deregulated drug advertising in 1997, American televisions, newspapers and magazines were inundated with numerous direct-to-consumer advertisements. Advertising of prescription drugs suddenly became the fourth largest advertising category in the US; surpassed only by automobiles, restaurants and movies. In 2002, American consumers spent nearly $150 billion on drugs and medication and the figure was projected to touch $254 billion by 2005. Critics, ranging from non-profit organisations to consumers, argued that the deregulation boosted consumer spending on drugs. As a result, the FDA found itself in a difficult position to defend its policy on advertising of drugs. But in February 2004, the FDA took a stricter stance and issued a new set of guidelines to make the drug adverts more consumer-friendly. The case study offers scope for discussion on the interplay of direct-to-consumer advertising and consumer drug spending. More specifically, the case tries to gauge the impact of the FDA''s guidelines on the concerned groups. A structured assignment ''204-059-4'' is available to accompany this case.