Texas is thought for doing issues large, and that now consists of its telemarketing rules. A brand new state regulation, 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 regulation and its potential impacts.
This weblog submit is for informational functions solely and isn’t authorized recommendation. The brand new regulation has advanced language and introduces important danger. An necessary step in defending your online business is to seek the advice of your authorized counsel.
What Modified with SB 140?
The important thing modifications within the new regulation are designed to offer Texas customers extra energy and safety towards undesirable advertising and marketing communications.
A Broader Definition of “Phone Solicitation”
Essentially the most important change for entrepreneurs is the enlargement of the time period “phone solicitation.” Beneath the outdated regulation, it primarily referred to voice calls.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 are actually 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 beneath the Texas Misleading Commerce Practices Act (DTPA). Which means that customers can now sue companies instantly for violations of telemarketing legal guidelines, together with:
- Calling numbers on the Texas “Do Not Name” checklist.
- 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 opportunity of treble damages for intentional misconduct. A client may file a number of lawsuits for repeated violations.
New and Expanded Registration Necessities
The regulation additionally reinforces present telemarketer registration necessities. If your online business is making phone solicitations from Texas or to Texas residents, you might must register with the Texas Public Utility Fee.
The applying price 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 nice of $5,000 per violation.
Key Compliance Issues
So, what now?
First, take a deep breath. The spirit of the regulation is to guard customers from unsolicited communications.
To adapt to those modifications, listed here are some areas to contemplate reviewing:
Seek the advice of Your Authorized Staff
First issues first, seek the advice of your authorized crew.
Whereas we will present data and areas to contemplate, this weblog submit is for informational functions solely and is not authorized recommendation. The brand new regulation has advanced language, and an necessary step in defending your online business is to seek the advice of your authorized counsel.
They will present particular steering on whether or not your online business falls beneath the brand new regulation’s registration necessities and can assist you navigate the nuances of the laws to make sure you are totally compliant.
Evaluation Your Consent Technique
Guarantee you have got a transparent, documented course of for acquiring and monitoring consent for all of your SMS advertising and marketing communications. For those who’re utilizing Drip SMS, we offer opt-in affirmation and a file of consent for anybody who opts in by means of a Drip kind.
Comply with Greatest Choose-In Practices 
A few of these greatest practices are constructed into Drip SMS, equivalent to making certain subscribers clearly perceive your SMS phrases and offering a transparent strategy to decide out of messages. You may also use double opt-in to verify a person’s subscription.
Evaluation Your Choose-Out Course of
Be certain your opt-out course of is seamless and that you simply honor all requests promptly.
For Drip SMS customers, we robotically decide 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 promoting rules and client privateness is consistently evolving. At Drip, we’ll be right here to provide the data you want each step of the way in which.
