Senate Bill 140 made significant updates to Texas telemarketing laws, including a confusing, and potentially onerous, registration requirement for businesses that send sales or commercial texts, which went into effect on September 1, 2025. The state has now provided some much-needed clarity for businesses that obtain prior consent for sending such text messages to Texas residents. The Texas Attorney General has taken the position, as part of its defense against a lawsuit (Ecommerce Marketers Alliance, Inc. et al. v. Texas et al., No. 1:25-cv-1401 (W.D. Tex. 2025) seeking to enjoin the bill from taking effect, that the amendments, namely the registration requirement including detailed disclosures and a $10,000 security bond, were not intended to apply to consent-based text messaging.
Texas clarifies telemarketing laws
After settlement of the lawsuit, the Texas Secretary of State has now updated its public guidance to confirm that “any business that sends text messages with prior consent of the consumer is not required to complete the Telephone Solicitation Registration Statement,” as required under the amended law. In addition, any business that, in an abundance of caution, submitted a registration statement that has not yet been acted on by the Secretary of State may withdraw its application.
Telemarketing amendments ease burden, but risk remains
This is a welcome relief for the many retailers, financial service providers, healthcare companies, and other consumer-facing brands that use text message communications with prior express consent. However, some risk remains for these entities. The Texas telemarketing laws provide a private right of action, and some plaintiffs may try to allege, notwithstanding the Texas Attorney General’s position, that the amendments require registration even for consented-to text messages and seek to enforce the law. While the Texas Attorney General interpretation and official position is a strong, persuasive argument—and ideally a deterrent, it is not binding on Texas courts.
Regardless of the reduced risk under the registration requirement, the threat of litigation and significant potential damages remains under other aspects of the law, including text messages sent without consent and violations of the statutory quiet hours.
We will continue to monitor regulatory, enforcement, and litigation developments in Texas and elsewhere that affect how businesses communicate with consumers. If your organization is evaluating compliance obligations under Texas telemarketing laws, or considering withdrawing a pending registration application, our team can assist with assessing risk, navigating the updated guidance, and implementing best practices for consent-based communications. Please reach out to discuss tailored strategies for your business.
Frequently Asked Questions
Does Texas telemarketing law cover phone calls, or only text messages?
Both. Chapter 302 of the Texas Business & Commerce Code has long required certain sellers who make telephone solicitation calls to register with the Secretary of State. SB 140 extended this same registration framework to text messages and similar electronic transmissions by amending the definition of “telephone solicitation.” The recent clarification described above applies specifically to consent-based text messages; the underlying registration requirement for cold calls and other non-exempt telephone solicitations is unchanged.
What businesses are exempt from Texas's telemarketing registration requirement?
In addition to the consent-based text messaging carve-out described above, Chapter 302 exempts several categories of businesses from registration, including certain publicly traded companies and their subsidiaries, retail sellers with a brick-and-mortar location that has operated under the same name for at least two years (where most sales occur in person), and businesses contacting their own current or former customers under certain conditions. Businesses claiming an exemption bear the burden of establishing that it applies; see the Texas Secretary of State's FAQ for the full list of exemptions.
What is the Texas Telephone Solicitation Act, and who does it apply to?
The Telephone Solicitation Act, codified at Chapter 302 of the Texas Business & Commerce Code, generally requires sellers who make telephone solicitations, including qualifying text messages under SB 140, to register with the Texas Secretary of State, post a security bond, and make certain disclosures, unless an exemption applies. It works alongside Chapter 305 of the same code, which sets quiet-hours and other consumer-protection rules and provides a private right of action for violations.