Effective September 1, 2025, Texas Senate Bill 140 (SB 140) will enact several significant changes to the state’s telemarketing laws (Business and Commercial Code, Chapters 301-305 (TX Mini-TCPA)) that, collectively, increase the potential legal exposure for companies that use phone calls and text messages to market to customers and the public in Texas. These state level regulations add to the complexity of compliance, especially to the extent they deviate from the federal Telephone Consumer Protection Act (TCPA), so any companies that engage in calling or texting Texas residents, as well as companies that call or text from within Texas, should be aware of the new requirements.
What's Important to Know?
- Texts are now covered communications. A promotional text to a Texas mobile number is now a “telephone solicitation” and treated the same as a telemarketing call or fax under Chapter 304.
- Private lawsuits are coming. A violation of any provision of the TX Mini-TCPA is now expressly deemed an “unfair and deceptive practice” under Texas law. As such, Texas consumers may now sue under (i) the Texas Deceptive Trade Practices Act (DTPA) and (ii) the existing private right of action in Chapter 304, with statutory damages of $500–$5,000 per violation (trebled for willful misconduct).
- Repeat claims are allowed. There is no limit to the number of claims or recoverable amounts in subsequent claims that a claimant may recover for violations, which opens the door for serial litigation.
All of that to say, there is a real possibility for class action exposure.
Who is Covered?
The law applies broadly to any “telemarketer” that makes or causes to be made a marketing communication to a Texas consumer. Unlike some state statutes, coverage is not limited to Texas-based entities; if the text reaches a Texas resident, the sender is within scope.
That said, there are some key exemptions from its requirements in Chapter 302, including without limitation for persons/businesses regulated by other laws (such as securities (public companies), insurance, financial institutions, and certain utilities), educational institutions and nonprofit organizations, and those soliciting media subscriptions or selling merchandise through established catalog arrangements.
Core Texas Compliance Obligations
- Registration & Bonding
File a telemarketing registration statement for each location from which texts are sent. The form is available online, and the filing fee is $200.
• Post and maintain a $10,000 surety bond (or alternative).
• Update quarterly with current sales personnel and any material changes. Annual renewal.
- Contact-Time Restrictions
Monday–Saturday: 9 a.m.–9 p.m. local time.
• Sunday: 12 p.m.– 9 p.m. local time.
• Stricter than the federal TCPA’s 8 a.m. start time.
- Texas No-Call List Scrubbing
Must suppress any number appearing on the list within 60 days of publication.
• Entries expire after three years—rescrub accordingly.
- Opt-Out Handling
Honor opt-out requests in a timely manner (days or weeks is not acceptable).
• Provide a clear, easy mechanism to stop texts (e.g., replying “STOP”).
- Recordkeeping
Keep consent records, scrubbing logs, and opt-out confirmations for at least four years.
Enforcement Landscape
Previously, there were a number of procedural hoops (such as filing a complaint with state), before filing suit. SB140’s addition of the new private right of action under the DTPA is a crucial change that makes it much easier for consumers to sue and for courts to award higher damages. Potential damages in a private lawsuit include: statutory damages ($500-$1500 per unlawful call or text), actual damages, treble damages (3x) and damages for mental anguish for intentional violations, and attorney’s fees.
The Public Utility Commission may impose administrative penalties up to $1,000 per violation; the Attorney General can seek civil penalties up to $5,000 per willful violation plus injunctions and fees.
Action Plan: What to Do Now?
All companies engaged in, or planning to engage in, telephone or text/SMS marketing involving Texas consumers should: (i) determine whether any of their current texting campaigns trigger TX Mini TCPA compliance, (ii) confirm whether any exemption applies, and then, if necessary, (iii) assess their current texting policies and practice against the Texas laws and update accordingly, (iv) begin the registration and bond process as soon as possible (ideally prior to September 1) to avoid violation, (v) provide targeted training to relevant teams (marketing, sales, customer service) so they are aware of the new rules, and (vi) implement or update ongoing monitoring and document retention to reduce possible exposure.
Looking Ahead
Early and proactive compliance is the most cost-effective defense.
