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    4. Changes to Texas telemarketing laws: What businesses need to know

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    Changes to Texas telemarketing laws: What businesses need to know

    Sep 3, 2025

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    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.

    Who must register for telemarketing in Texas?

    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.

    Registration process and compliance obligations

    For businesses required to register, the process includes:

    • Filing Form 3401 with the Texas Secretary of State and paying a $200 fee
    • Posting a $10,000 security (bond, certificate of deposit, or letter of credit)
    • Appointing the Texas Secretary of State as agent for service of process
    • Providing quarterly updates and completing annual renewals

    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.

    Exemptions to registration requirements

    Not all businesses are required to register. The law provides several exemptions, including:

    • Certain publicly traded companies and their subsidiaries
    • Certain financial institutions
    • Educational institutions and 501(c)(3) nonprofits
    • Businesses marketing the sale of food or food-related products
    • Brick-and-mortar retail exemption
      • If the business has operated under the same name for at least two years, and
      • A majority of sales occur at physical retail locations,
      • Then it may be exempt from registering and posting the $10,000 bond.
    • Current or former customer exemption
      • If SMS messages are sent only to current or former customers, and
      • The business has operated under the same name for at least 2 years,
      • Then no registration is required.
      • However, the law does not define “customer” precisely, so businesses should maintain documentation to support this exemption.

    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.

    Best practices for consent and opt-in language

    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].”

    Prioritize compliance to protect your business

    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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    The foregoing has been prepared for the general information of clients and friends of the firm. It is not meant to provide legal advice with respect to any specific matter and should not be acted upon without professional counsel. If you have any questions or require any further information regarding these or other related matters, please contact your regular Nixon Peabody LLP representative. This material may be considered advertising under certain rules of professional conduct.

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