Effective September 1, 2025, Texas Senate Bill 140 (SB 140) will go into effect, significantly expanding the state’s telemarketing regulations to cover marketing by text message (SMS and MMS). Even companies not located in Texas should take note: the law applies to any person, business, or other organization that sends marketing texts into the state. Failure to comply carries significant risk, including civil penalties and potential private lawsuits under the Texas Deceptive Trade Practices Act (DTPA).

Who and What is Covered?

Texas’ existing Chapter 302 regulates “sellers” who engage in “telephone solicitation.” SB 140 expands the definition of a “telephone solicitation” to include “transmission of a text or graphic message or of an image” intended to induce someone to purchase, rent, claim, or receive an item.

As a result of this change, any business soliciting Texas consumers by SMS or MMS is required to comply with Chapter 302’s registration, record-keeping, and similar requirements. Entity-level exemptions exist, but are narrowly tailored, and the burden of proving an exemption exists is with the business. Also notable: even before SB 140, Chapter 302 applied to businesses regardless of whether they used an autodialer—meaning even if you sent marketing texts manually, you still must comply.

Key Requirements

Those businesses newly subject to Chapter 302 have significant compliance obligations, including:

• Registration: One of the most significant requirements is registration. Covered businesses must register as telephone solicitors with the Texas Secretary of State by filing Form 3401, paying a $200 fee, and posting a $10,000 security bond. Registration must be renewed annually and updated regularly.
• Consent: Prior express written consent is required before sending marketing texts. Consent must be clear, unambiguous, and cannot be a condition of purchase.
• Opt-Outs: Every message must include an opt-out mechanism and opt-out requests must be honored immediately.
• Quiet Hours: Messages may not be sent before 9 a.m. or after 9 p.m. Texas local time.
• Recordkeeping: Companies must maintain records of consents, opt-outs, and message logs to demonstrate compliance.

Private Right of Action

In addition to imposing new compliance obligations on text marketers, SB 140 also grants plaintiffs potentially expansive new private rights of action.

Even before SB 140, Chapter 302 violations were considered “false, misleading, or deceptive” under Texas’ DTPA, enforceable by plaintiffs in a civil suit. (See Sec. 302.303.) By expanding Chapter 302 to encompass text marketing, SB 140 arguably creates a private right of action against text marketers who fail to comply with the compliance requirements. Additionally, SB 140 makes a violation of Chapters 304 and 305—prohibiting marketing including text messages to numbers on the Texas No-Call list, caller-ID spoofing, and calling a cell phone or faxing an individual without consent—a violation of the DTPA.

SB 140 also updates each chapter to state that “The fact that a claimant has recovered under a private action arising from a violation of this chapter more than once may not limit recovery in a future legal proceeding in any manner.”

As a result, businesses are now exposed to greater risk of private civil suits while still being subject to enforcement by the (very active!) Texas state attorney general.

Next Steps

With SB 140’s effective date quickly approaching, businesses that market to Texas residents should assess whether they fall under the law, confirm whether an exemption applies, and ensure their compliance practices are updated accordingly.

At Godfrey & Kahn, we are closely monitoring these developments and advising clients on compliance strategies. If your company uses SMS or MMS marketing, now is the time to review your practices. We are here to help you navigate these requirements and minimize your risk exposure.