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Changes to Texas telemarketing laws: What businesses need to know – Nixon Peabody LLP

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Changes to Texas telemarketing laws: What businesses need to know
Article
Sep 3, 2025
By Christina Chang and Ellie Heisler
To keep campaigns running smoothly and legally, marketers need to understand SB 140’s registration rules, exemptions, and smart strategies for compliant SMS and MMS outreach in Texas.
Texas has overhauled its telemarketing laws with Senate Bill 140 (SB 140), making it one of the toughest state-level regimes for businesses engaging with Texas residents. Effective September 1, 2025, text-based outreach, including SMS and MMS, will be regulated like phone calls under the Texas Business & Commerce Code §§301–305. While the federal Telephone Consumer Protection Act (TCPA) sets baseline rules for consent and auto dialers, SB 140 goes further: it mandates registration, bonding, and disclosures; expands private lawsuits under Texas consumer protection laws; and imposes penalties of up to $5,000 per violation. It’s more than a “mini-TCPA”—it’s stricter, riskier, and demands serious compliance. Here’s what businesses need to know to stay on the right side of the law.
Any business that operates in Texas or sends automated calls or SMS/MMS messages to Texas residents for sales or commercial purposes must register with the Texas Secretary of State unless an exemption applies.
For businesses required to register, the process includes:
A separate registration certificate is required for each business location from which the calls are made. Additionally, businesses must ensure that all marketing messages are sent between 9:00 am and 9:00 pm local time, Monday through Saturday, and after (12:00 pm) on Sundays. Maintaining clear, time-stamped consent records and processing opt-outs immediately is also mandatory.
Not all businesses are required to register. The law provides several exemptions, including:
If a business is not clearly exempt, it is strongly advised to register, as the burden of proof lies with the business, not the SMS platform or vendor.
Maintain 10DLC Registration: While not part of Texas law, 10DLC (10-digit long code) registration is required by mobile carriers for businesses sending application-to-person (A2P) SMS. So even if businesses comply with SB 140, failing to register for 10DLC can result in blocked messages or carrier penalties—undermining their marketing efforts. Registration is handled through The Campaign Registry (TCR), typically via a Campaign Service Provider (CSP) or SMS platform. Each campaign type must be registered separately, and the process can take days or weeks. If you’re unsure about your status or need help navigating these requirements, reach out to our team for guidance.
To ensure compliance with both federal and state laws, including TCPA and SB140, businesses should use clear, comprehensive opt-in language at the point of SMS subscription. A model disclosure might read:
“By entering your phone number and clicking ‘Subscribe,’ you agree to receive recurring automated promotional and personalized marketing text messages (e.g., cart reminders, special offers) from [Company Name] [and/or its providers such as X] at the mobile number provided. Consent is not a condition of purchase. Message and data rates may apply. Message frequency varies. Reply STOP to unsubscribe or HELP for help. View our [Privacy Policy] and [Terms].”
With the updated Texas SMS marketing laws, businesses must be proactive in understanding their obligations pertaining to Texas residents, registering when required, and maintaining best practices for consent and message delivery. Nixon Peabody’s Advertising, Promotions & Rights of Publicity and TCPA & Consumer Privacy Teams are here to help you stay compliant with the new regulations and continue to utilize SMS marketing effectively while minimizing legal and operational risks.
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