Texas Senate Bill (SB) 140, effective September 1, 2025, brings significant changes to the way businesses must approach marketing in the state. Previously, telemarketing laws primarily targeted traditional phone calls, but SB 140 broadens this scope to cover various digital communication channels. This includes texts, multimedia messages (MMS), Rich Communication Services (RCS), and other mobile-based outreach.
The new law aligns digital marketing practices with the same strict regulations as traditional telemarketing calls. If your business engages in marketing through these methods and targets Texas residents, it is crucial to understand how SB 140 will impact your operations.
Why SB 140 Matters to Your Business
SB 140 introduces critical changes that require your business to adjust its marketing practices, particularly if you are using text-based strategies. Here’s what you need to know:
- Digital Messages Are Now Telemarketing Calls: Any message sent via SMS, MMS, or RCS promoting goods or services is considered a telemarketing call under SB 140. This means your business must follow all regulations related to telemarketing, including obtaining consent and adhering to quiet hours.
- Registration Requirement: Businesses engaging in telemarketing must file Form 3401 with the Texas Secretary of State and pay an annual fee of $200. Additionally, a $10,000 security deposit (in the form of a bond, letter of credit, or certificate of deposit) is required to ensure compliance.
- Stronger Consumer Protections: SB 140 grants consumers the right to directly file lawsuits under the Texas Deceptive Trade Practices Act (DTPA) for violations. This includes instances such as calling outside of allowed hours or ignoring opt-out requests. The law significantly enhances consumer power by allowing lawsuits without waiting for regulatory intervention.
- Stacked Lawsuits: A key provision of SB 140 is the allowance for “successive recoveries” under the law. This means that consumers can file multiple claims for repeat violations, and there is no cap on the damages businesses may have to pay.
To ensure your business remains compliant with SB 140, here’s a breakdown of the immediate actions you should take:
- Audit Your Outreach – Review all of your business’s marketing outreach to Texas residents. Examine your text-based campaigns (SMS, MMS, RCS) and ensure that they align with SB 140’s telemarketing regulations. Update your marketing strategy to meet the new legal requirements.
- Verify Registration or Exemptions – Certain businesses may be exempt from some of the requirements of SB 140. For instance, nonprofits, businesses targeting current customers (if they’ve been customers for over two years), and some other specific exemptions exist. However, the burden of proof is on your business to demonstrate that you qualify for an exemption.
- Secure Informed, Written Consent – Ensure that your business obtains clear and documented consent from consumers before sending marketing messages. Consent remains a critical part of the process, and businesses must be able to demonstrate that they have obtained it.
- Honor Quiet Hours and Opt-Outs – SB 140 limits marketing outreach to specific hours: Monday to Saturday, between 9 AM and 9 PM (local time), and Sunday from 12 PM to 9 PM. Additionally, businesses must immediately process opt-out requests, respecting consumers’ preferences.
- Request Legal/Compliance Review – Given the potential for litigation under the DTPA and significant penalties (up to $5,000 per violation, plus treble damages and attorneys’ fees), it’s advisable to consult legal experts. Proactive legal guidance will help you navigate the complex requirements of SB 140.
Conclusion
Texas SB 140 significantly alters the telemarketing landscape, particularly for businesses relying on text-based marketing. If your marketing efforts involve outreach to Texas residents, now is the time to audit your practices, register with the Texas Secretary of State (if required), and ensure compliance with the new regulations. Ignoring these changes could result in hefty fines and legal action, so taking steps now to stay compliant is crucial.
