Texas is thought for doing issues large, and that now consists of its telemarketing laws. A brand new state legislation, Senate Invoice 140 (SB 140), is about to take impact on September 1, 2025, and it is a game-changer for any enterprise that engages in SMS advertising and marketing to Texas residents.
This is not a minor replace—SB 140 considerably broadens the scope of what is thought of telemarketing, introduces new litigation dangers, and will increase penalties for non-compliance.
This is what entrepreneurs must know in regards to the new legislation and its potential impacts.
This weblog submit is for informational functions solely and isn’t authorized recommendation. The brand new legislation has advanced language and introduces important danger. An vital step in defending your enterprise is to seek the advice of your authorized counsel.
What Modified with SB 140?
The important thing modifications within the new legislation are designed to present Texas shoppers extra energy and safety in opposition to undesirable advertising and marketing communications.
A Broader Definition of “Phone Solicitation”
Essentially the most important change for entrepreneurs is the growth of the time period “phone solicitation.” Beneath the outdated legislation, it primarily referred to voice calls. SB 140 now explicitly consists of:
- Textual content messages
- Picture messages
- Different digital transmissions
This implies SMS and MMS advertising and marketing campaigns at the moment are topic to the identical strict guidelines as conventional telemarketing calls.
Expanded Non-public Proper of Motion
SB 140 creates a brand new non-public proper of motion below the Texas Misleading Commerce Practices Act (DTPA). Which means that shoppers can now sue companies instantly for violations of telemarketing legal guidelines, together with:
- Calling numbers on the Texas “Do Not Name” listing.
- Failing to honor opt-out requests.
- Utilizing automated dialing gear with out correct consent.
The monetary stakes are excessive, with potential damages starting from $500 to $10,000 per violation, and the potential for treble damages for intentional misconduct. A client may also file a number of lawsuits for repeated violations.
New and Expanded Registration Necessities
The legislation additionally reinforces current telemarketer registration necessities. If your enterprise is making phone solicitations from Texas or to Texas residents, it’s possible you’ll must register with the Texas Public Utility Fee.
The applying payment is $200, and registration requires that companies submit a $10,000 safety deposit within the type of a bond executed by a company safety, an irrevocable letter of credit score, or sure certificates of deposit.
There are some exemptions, however failure to register may end up in a superb of $5,000 per violation.
Key Compliance Concerns
So, what now?
First, take a deep breath. The spirit of the legislation is to guard shoppers from unsolicited communications.
To adapt to those modifications, listed here are some areas to contemplate reviewing:
Seek the advice of Your Authorized Group
First issues first, seek the advice of your authorized staff.
Whereas we will present info and areas to contemplate, this weblog submit is for informational functions solely and is not authorized recommendation. The brand new legislation has advanced language, and an vital step in defending your enterprise is to seek the advice of your authorized counsel.
They will present particular steerage on whether or not your enterprise falls below the brand new legislation’s registration necessities and may help you navigate the nuances of the laws to make sure you are absolutely compliant.
Evaluation Your Consent Methodology
Guarantee you have got a transparent, documented course of for acquiring and monitoring consent for all of your SMS advertising and marketing communications. When you’re utilizing Drip SMS, we offer opt-in affirmation and a document of consent for anybody who opts in by means of a Drip kind.
Observe Greatest Choose-In Practices 
A few of these finest practices are constructed into Drip SMS, reminiscent of guaranteeing subscribers clearly perceive your SMS phrases and offering a transparent approach to choose out of messages. It’s also possible to use double opt-in to substantiate a consumer’s subscription.
Evaluation Your Choose-Out Course of
Be sure that your opt-out course of is seamless and that you simply honor all requests promptly.
For Drip SMS customers, we mechanically choose out anybody who replies STOP, STOPALL, UNSUBSCRIBE, CANCEL, END, or QUIT to your SMS quantity. We additionally ship an opt-out affirmation message instantly after a subscriber opts out.
The panorama of selling laws and client privateness is consistently evolving. At Drip, we’ll be right here to provide the info you want each step of the way in which.