Texas is thought for doing issues huge, and that now contains its telemarketing rules. A brand new state regulation, Senate Bill 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-about telemarketing, introduces new litigation dangers, and will increase penalties for non-compliance. 

Here is what entrepreneurs have to know concerning the new regulation and its potential impacts.

This weblog put up is for informational functions solely and isn’t authorized recommendation. The brand new regulation has advanced language and introduces vital threat. An essential 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 shoppers extra energy and safety in opposition to undesirable advertising and marketing communications.

A Broader Definition of “Phone Solicitation”

Essentially the most vital change for entrepreneurs is the enlargement of the time period “phone solicitation.” Underneath the previous regulation, it primarily referred to voice calls. SB 140 now explicitly contains:

  • Textual content messages
  • Picture messages
  • Different digital transmissions

This implies SMS and MMS advertising and marketing campaigns at the moment are topic to the identical strict guidelines as conventional telemarketing calls.

Expanded Personal Proper of Motion

SB 140 creates a brand new personal proper of motion underneath the Texas Misleading Commerce Practices Act (DTPA). Which means shoppers can now sue companies straight for violations of telemarketing legal guidelines, together with:

  • Calling numbers on the Texas “Do Not Name” record.
  • 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 potential for treble damages for intentional misconduct. A shopper 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, it’s possible you’ll have to register with the Texas Public Utility Commission. 

The appliance payment is $200, and registration requires that companies put up 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 tremendous of $5,000 per violation. 

Key Compliance Concerns 

So, what now? 

First, take a deep breath. The spirit of the regulation is to guard shoppers from unsolicited communications.

To adapt to those modifications, listed below are some areas to think about reviewing:

Seek the advice of Your Authorized Crew

First issues first, seek the advice of your authorized crew. 

Whereas we will present data and areas to think about, this weblog put up is for informational functions solely and is not authorized recommendation. The brand new regulation has advanced language, and an essential step in defending your online business is to seek the advice of your authorized counsel. 

They’ll present particular steerage on whether or not your online business falls underneath the brand new regulation’s registration necessities and may help you navigate the nuances of the laws to make sure you are absolutely compliant.

Evaluation Your Consent Methodology

Guarantee you could have 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 confirmation and a report of consent for anybody who opts in by means of a Drip kind. 

Observe Finest Decide-In Practices

A few of these best practices are constructed into Drip SMS, equivalent to making certain subscribers clearly perceive your SMS phrases and offering a transparent approach to decide out of messages. You can even use double opt-in to verify a person’s subscription. 

Evaluation Your Decide-Out Course of

Ensure that 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 confirmation message instantly after a subscriber opts out. 

The panorama of selling rules and shopper privateness is continually evolving. At Drip, we’ll be right here to provide the data you want each step of the way in which.


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