Generic drugs are those which are the copies of the brand name drugs. These have the same dosage, route of administration, side effects, and intended use. However, they are significantly cheaper than the brand name drugs.
It is not at all illegal to use and possess the generic drugs as long as you have the prescription for them. However, as with the brand name drugs, it is illegal to have them and use them if you do not have prescription for them.
Hence, the given statement is false.