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New Requirements for Text Marketing in Texas

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Texas has enacted an amendment to its longstanding Texas Telephone Solicitation Act (“TTSA”) under <a href="https://capitol.texas.gov/tlodocs/89R/billtext/html/SB00140F.htm">Senate Bill 140</a> (“SB 140”), effective September 1, 2025. This amendment significantly expands telemarketing regulations to cover businesses that market to Texas residents using voice-call, text messages and other similar digital transmissions.

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To comply with the TTSA, companies that are based in Texas or are marketing to Texas residents, which includes sending marketing messages using text, are required to register as a telemarketer by September 1, 2025, or face stiff penalties.

Before you begin the registration process, first check to confirm whether you fall within an exemption to the TTSA. There are a number of exemptions to the registration requirements, including for publicly traded companies, certain financial institutions, not for profits, educational institutions, businesses marketing sales of food, and retail sellers with brick and mortar locations which have operated under the same name for the last two years and a majority of sales occur at retail locations, among others.

How to Register: If you determine that you are required to register under the TTSA as a result of the amendment, we recommend taking the following immediate actions:

If you do send voice or text messages to prospective Texas customers, you must file certain forms which you can locate on the Texas Secretary of State’s website at <a href="https://www.sos.state.tx.us/forms.shtml">https://www.sos.state.tx.us/forms.shtml</a>.

File an <a href="https://www.sos.state.tx.us/statdoc/forms/3401.pdf">annual registration</a> with the Texas Secretary of State;

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Post a $10,000 surety bond, letter of credit, or certificate of deposit using one of the forms available on the Secretary of State site; and

File a form to appoint the Secretary of State as the Agent of Service

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Risks of Failure to Register

The amended TTSA now gives consumers powerful new rights to sue businesses directly for violations—without first having to file a complaint with a government agency.

Immediate Lawsuit: If a business violates the TTSA (including rules about registration, calling/texting times, honoring opt-outs, or contacting numbers on the Texas Do-Not-Call list), a consumer can file a lawsuit in court immediately.

No Agency Prerequisite: Consumers are not required to report the violation to the Texas Attorney General or another agency before suing.

Expanded Damages: Consumers can seek actual damages, up to three times those damages for intentional or knowing violations, and recover their attorneys’ fees.

Enhanced Penalties: In addition to civil penalties of up to $5,000 per violation (and $25,000 per violation of any injunction), the amendments authorize criminal prosecution (Class A misdemeanor) for knowing unregistered solicitations and open the door to DTPA remedies, including mental-anguish damages.

Multiple Lawsuits Allowed: Each violation can be the basis for a separate lawsuit—even by the same consumer—if the business continues to violate the law.

There are a number of other actions to take to reduce your legal risk if you are required to register under the TTSA:

<a name="cite-53bbaf14-bd66-459b-8d69-f35abb9f4b3"></a>Don’t Forget Federal Law Applies Too. Remember that these requirements are in addition to and not in lieu of your compliance obligations under the Federal Communications Commission’s TCPA rules, which also require prior written consent for commercial texts in most cases.

Segment Your Audience: Identify and segment Texas residents in your marketing lists. If you cannot reliably determine residency, treat all contacts as potentially covered by the law.<a name="cite-8cab6df0-a65f-4ff0-8f0a-691feb02102"></a>

Obtain and Document Consent: Ensure you have clear, express, and written consent for all marketing texts and calls. Maintain detailed records of consent, including time stamps, IP addresses, and the exact language used.

Update Opt-In Language: Clearly disclose that marketing texts may be sent via automated means, that consent is not a condition of purchase, and include information about message frequency, data rates, and opt-out instructions (e.g., “Reply STOP to cancel”).

Implement Double Opt-In: Consider requiring a confirmation reply (such as “YES”) before sending marketing messages to new subscribers.

Honor Opt-Out Requests Promptly: Ensure all opt-out requests (e.g., replies of “STOP” or “END”) are processed immediately and that no further marketing messages are sent to those contacts.

Comply with Quiet Hours and Do-Not-Call Rules: Only send marketing messages during permitted hours (not before 9 a.m. or after 9 p.m. on weekdays/Saturdays, or before noon or after 9 p.m. on Sundays) and avoid contacting numbers on the Texas Do-Not-Call list.

Review and Update Vendor Contracts: Ensure all third-party vendors and SMS platforms comply with the new Texas law and provide appropriate indemnification.

Train Staff: Educate marketing, sales, and customer service teams on the new requirements, including the expanded definition of “telephone solicitation” and the importance of honoring opt-outs and maintaining records.

Maintain Documentation: Keep auditable records of all compliance activities, including consent, registration, bonding, and opt-out fulfillment, to defend against potential claims.

This Client Alert is for general informational purposes only, does not constitute legal advice, and does not create an attorney–client relationship. For assistance tailoring a compliance strategy, determining if a limited exemption applies to your business, or revising contractual protections, please contact Aaron Barker – aaron.barker@michaelbest.com, Guy Sereff – gbseref@michaelbest.com, or Elaina Bailey – elaina.bailey@michaelbest.com.

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Close-up of a wooden judge’s gavel resting on a sounding block.

Elaina E. Bailey

Linda C. Emery, CIPP/US

Intellectual Property

Litigation

Venture Best

Urgent Reminder for Companies Using SMS Marketing in Texas to Register Under the  Telephone Solicitation Act by September 1, 2025 New Obligations for Calls, Texts, and Other Digital Outreach

Urgent Reminder for Companies Using SMS Marketing in Texas to Register Under the Telephone Solicitation Act by September 1, 2025 New Obligations for Calls, Texts, and Other Digital Outreach

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