On Sept. 1, 2025, Texas Senate Bill 140 (SB 140) took effect, expanding the state's regulation of “telephone solicitations” to include SMS text messages. The law imposes significant requirements on businesses using text messages to reach consumers in Texas. If your business sends marketing texts to Texas residents, here's what you need to know:
- Your business must register with the Texas Secretary of State and post a $10,000 bond. The registration form requires businesses to provide extensive — sometimes sensitive — information that may become public. The registration fee is $200, and registration must be renewed annually.
- Exemptions from compliance with SB 140 are very limited. Your business may avoid the registration and bonding requirement if you contact only current or former customers and have operated under the same name for the past two years. Other exemptions exist for certain publicly traded companies and their subsidiaries, financial institutions, educational institutions, 501(c)(3) nonprofits, and businesses selling food.
- It does not matter where your business is located. SB 140 applies if anyone on your SMS marketing list lives in Texas. Relying on area codes alone is risky, as many people keep out-of-state numbers after moving to Texas.
- Messaging hours have more restrictions. Promotional texts cannot be sent after 12 p.m. on Sunday in addition to the standard overnight quiet hours between 9 p.m. and 9 a.m.
- Additional disclosures are required. Disclosures previously required for telemarketing — such as stating a name, address, and purpose for the call — now apply to SMS messaging. Compliance may require multiple additional texts, potentially frustrating recipients.
- There are multiple potential penalties for non-compliance. SB 140 creates a private right of action for consumers, and therefore, increases the risk of litigation arising from non-compliance (or perceived non-compliance). Violations are subject to fines of up to $5,000 per violation, triple damages, attorneys' fees, and mental anguish awards. With no limit on total liability, a single campaign could result in multiple claims and uncapped financial exposure.
- If you use a third-party platform for SMS marketing, you are still responsible for compliance. The platform cannot register with the Texas Secretary of State on your behalf.
While recently filed litigation is challenging SB 140 on First Amendment grounds, it may be some time before businesses, marketers, and consumers have clarity on the law's constitutionality or which provisions will remain in effect. In the meantime, businesses should ensure compliance with SB 140's requirements.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
