- within Media, Telecoms, IT and Entertainment topic(s)
- in United States
- within Media, Telecoms, IT, Entertainment, Cannabis & Hemp and Privacy topic(s)
State argues opt-in text messages fall outside new registration and bond requirements
Highlights
- New law imposes complex registration and $10,000 bond on companies who want to text Texas consumers.
- An exemption exists for companies to text current or former customers within two years.
- State indicates that Texas will not punish businesses that text consumers who opt-in to texts.
- New requirements may not be necessary if a business has well-documented opt-in procedures and only contacts individuals who have consented in writing to receiving marketing texts.
On Sept. 1, 2025, Texas Senate Bill 140 (SB 140) took effect, imposing significant requirements — including a complicated registration form and a $10,000 bond — on businesses using text messages to reach consumers in Texas.
The law provides an exemption to the registration and bonding requirement to businesses that contact only current or former customers and have operated under the same name for the past two years. However, "customers" is not defined in the statute, making the rule unclear as to whether it includes people who may have opted in to marketing texts but have not made a purchase.
Three entities sued Texas to block enforcement of the new law. While that litigation is ongoing, a recent filing by the state provides welcome clarity on how the law applies to sending texts to individuals who have opted in to receiving those texts. Texas argued that although the definition of "telephone call" has been expanded to include text messages, the existing exclusion of transmissions a mobile customer has agreed to receive, found in Chapter 304 of the statute, still applies. The state further argued that the law is meant to protect people from deceptive telephone solicitations, and that consent-based text messaging is not deceptive and thus does not fall under the purview of the new law.
This development should come as a relief to many businesses, at least for now. Based on the state's statements to the court, it is not concerned with punishing businesses that are texting Texas consumers who have consented to receiving those texts. On the other hand, some questions about SB 140 remain unclear, such as whether an individual consumer might still be able to succeed with a private right of action.
In short, registration and bonding in Texas may not be necessary if a business already has clear, well-documented opt-in procedures and only contacts individuals who have consented in writing to receiving marketing texts. Outside of SB 140, it is important that business establish these opt-in procedures to comply with other state and federal laws, such as the Telephone Consumer Protection Act (TCPA).
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.