What's Happening?
Texas Senate Bill 140 (SB 140) has expanded regulations on telephone solicitations to include SMS text messages, effective September 1, 2025. Businesses using text messages for marketing to Texas residents must now register with the Texas Secretary of State and post a $10,000 bond. The registration process requires detailed information and incurs a $200 fee, with annual renewals necessary. 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. Messaging hours are restricted, prohibiting promotional texts after 12 p.m. on Sundays and during overnight hours. Additional disclosures are required, and non-compliance can lead to fines, litigation, and uncapped financial exposure.
Why It's Important?
The expansion of SMS marketing regulations in Texas represents a significant shift in how businesses must approach consumer outreach. Companies face increased compliance costs and potential legal risks, which could impact marketing strategies and consumer engagement. The law aims to protect consumers from unsolicited messages, but it also places a burden on businesses, especially smaller ones, to navigate complex registration and compliance requirements. The potential for litigation and financial penalties underscores the importance of adhering to the new rules, which could influence marketing practices nationwide as other states consider similar measures.
What's Next?
Businesses must quickly adapt to the new regulations to avoid penalties. Legal challenges to SB 140 are underway, questioning its constitutionality on First Amendment grounds. The outcome of these challenges could affect the law's future enforcement and provide clarity on its provisions. Companies should monitor these developments and ensure compliance in the interim, possibly reevaluating their marketing strategies to align with the new legal landscape.
