What is the story about?
What's Happening?
Texas Senate Bill 140 (SB 140) has come into effect as of September 1, 2025, significantly expanding regulations on SMS marketing within the state. The law mandates businesses that send marketing text messages to Texas residents to register with the Texas Secretary of State and post a $10,000 bond. This registration requires businesses to provide detailed information, which may become public, and involves a $200 fee that must be renewed annually. Exemptions are limited, applying only to businesses contacting current or former customers, publicly traded companies, financial institutions, educational institutions, nonprofits, and food sellers. The law applies regardless of the business's location if the recipient resides in Texas. SB 140 also imposes restrictions on messaging hours and requires additional disclosures similar to those for telemarketing. Non-compliance can lead to significant penalties, including fines up to $5,000 per violation, triple damages, and legal fees. Businesses using third-party platforms for SMS marketing remain responsible for compliance.
Why It's Important?
The implementation of SB 140 is crucial for businesses engaging in SMS marketing in Texas, as it introduces stringent compliance requirements and potential legal risks. The law aims to protect consumers from unsolicited and potentially intrusive marketing practices, reflecting broader trends in consumer privacy and protection. Businesses face increased operational costs due to registration fees and potential penalties for non-compliance, which could impact their marketing strategies and financial planning. The law also highlights the growing regulatory scrutiny on digital marketing practices, which could influence similar legislative actions in other states. Companies that fail to adapt to these changes risk significant financial exposure and damage to their reputation.
What's Next?
Legal challenges have been filed against SB 140, questioning its constitutionality on First Amendment grounds. The outcome of these challenges could affect the law's enforcement and the scope of its provisions. Businesses, marketers, and consumers are awaiting clarity on these legal proceedings, which may take time to resolve. In the interim, businesses must ensure compliance with the current requirements to avoid penalties. The evolving legal landscape may prompt further adjustments in marketing strategies and increased advocacy for clearer regulations.
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