If your business sends marketing texts to customers in Texas, you’re now operating under telemarketing law. Texas SB 140 extended the state’s existing telemarketing framework to cover SMS and MMS messages, which means registration requirements, consent documentation, and penalty exposure that didn’t apply before.
This breakdown covers what changed, what’s required, and the steps businesses should take.
In This Guide: 1. Plain-English Summary 2. What Changed for SMS/MMS Solicitation 3. Registration Requirements 4. Operational Compliance Obligations 5. Penalties and Lawsuits 6. Recommended Next Steps
Disclaimer: This article is informational only and is not legal advice. Consult qualified legal counsel for guidance specific to your situation.
Plain-English Summary
Texas SB 140 expands the state’s telemarketing framework to include SMS and MMS messages. Marketing texts are now treated like telemarketing calls under Texas law. Businesses must comply with registration and operational requirements before sending promotional messages to Texas residents.
What Changed for SMS/MMS Solicitation
Before SB 140, Texas telemarketing rules focused primarily on voice calls. The new law closes that gap:
- Scope broadened: SMS/MMS and digital messages now fall under the same telemarketing regulations as phone calls
- Enforcement expanded: Non-compliant texts can trigger private lawsuits under the Texas Deceptive Trade Practices Act (DTPA), plus Attorney General enforcement
Registration Requirements
Most businesses sending marketing texts to Texas numbers must register with the Texas Secretary of State and post a surety bond using Form 3401 before sending.
Contact the Texas Secretary of State’s office or qualified legal counsel to determine whether an exemption applies to your business or industry.
Operational Compliance Obligations
Once registered, senders must:
- Obtain documented consent before sending marketing texts
- Include a clear opt-out method in every message (example: “Reply STOP to opt out”)
- Follow Texas time-of-day restrictions for message delivery
- Scrub contact lists against Texas and federal do-not-call registries
- Maintain records of consent, opt-outs, messages sent, registration, and bond documentation
Penalties and Lawsuits
The consequences for non-compliance are significant:
- Private lawsuits under the DTPA with potential statutory damages
- Statutory damages: $500 per violation, up to $1,500 per knowing or intentional violation
- Attorney General enforcement: Up to $5,000 per violation
- Multiple violations may be treated as separate actions, compounding exposure quickly
Recommended Next Steps
- Determine whether your contact list includes Texas phone numbers
- Register with the Texas Secretary of State and obtain the required bond before continuing SMS marketing to Texas numbers
- Update your consent collection process to capture documented, affirmative opt-in
- Add or verify opt-out language in every outgoing marketing message
- Configure your SMS platform to respect Texas time-of-day sending restrictions
- Set up routine scrubbing against Texas and federal do-not-call lists
- Document all compliance measures and store records consistently
- Consult qualified legal counsel to confirm applicability and identify any exemptions
If SB 140 is prompting you to reconsider your marketing mix, that’s a good time to evaluate which channels make the most sense for your business. AdvisingIQ works with small businesses to build marketing strategies that are effective and sustainable across the right channels. Contact us to talk through your options.
Wrapping Up: Compliance Is the Starting Point
SB 140 doesn’t prohibit SMS marketing – it regulates it. For businesses that were already collecting proper consent and following best practices, the required changes are mostly administrative. For businesses that weren’t, the risk is now significant.
The steps above are your starting point. Work with legal counsel to confirm what applies to your specific situation before continuing any SMS marketing to Texas numbers.
Frequently Asked Questions
Does SB 140 apply to businesses located outside Texas? Yes, if you’re sending marketing texts to Texas phone numbers. The law applies based on the recipient’s location, not the sender’s.
What counts as a “marketing text” under SB 140? Promotional messages intended to advertise or sell products or services. Transactional messages such as order confirmations and appointment reminders are generally treated differently, but confirm applicability with legal counsel.
What is Form 3401? It’s the Texas Secretary of State registration form required for businesses soliciting by telephone or text. Filing includes a surety bond requirement.
What opt-out language is required? Clear instructions for stopping messages in every marketing text, such as “Reply STOP to opt out.” The requirement is that recipients have an accessible way to opt out in each message.
Where can I verify current do-not-call list requirements? Start with the Texas Secretary of State’s office and the FTC’s National Do Not Call Registry. A qualified attorney can help you determine which lists apply and how to scrub against them.