How-To Guides
If you're texting or emailing anyone in Texas, Senate Bill 140 just made your life way more interesting . . . and if you’re a business, potentially risky.
As of September 1, 2025, telemarketing laws were broadened to cover texts. Even a simple promo or sale alert via SMS or MMS qualifies as telemarketing under this new law. Compliance is non-negotiable. If you fail to register, maintain consent records, adhere to quiet hours and include opt-out mechanisms in every message, you’re setting yourself to face hefty fines, mandatory payment of attorney's fees and repeated lawsuits. Yikes.
Fear not though . . . We have an easy SMS compliance checklist for you to follow below!
With 9% of the U.S. population living in Texas, it’s likely that you need to go through a handful of steps in order to play by the state’s new telemarketing rules.
SB 140 is basically Texas saying, “Don’t even think about texting me without playing by our rules.”
Don’t mess with Texas has taken on a whole new meaning!
What Has SB 140 Actually Changed for Text Marketing?
Here’s a no-fluff overview of what SB 140 is changing, in regards to SMS marketing.
The Telemarketing Scope Has Expanded. “Telephone solicitation” now includes SMS, MMS and even graphic/image transmissions. That means that any ads and commercial messages sent by text now count as telemarketing.
You’re a Solicitor Now. If you text marketing content to Texans, you could be seen as a “seller” needing registration . . . even if you're not in Texas.
Private Lawsuits Are On. SB 140 charges violations of Chapters 304 and 305 under the Texas Deceptive Trade Practices Act (DTPA), giving consumers a direct ticket to sue brands, with damages, attorney’s fees and mental anguish claims on the table. It’s also worth noting that breaking the rules once doesn’t give you a free pass. Every new offense still counts.
Quiet Hours Are Expanded: Messages may not be sent before 9 a.m. or after 9 p.m. Texas local time.
Who Gets a Pass (AKA Exemptions)?
Good news for some of you: Exemptions to these new laws exist! You may dodge registration if your brand falls into any of the following categories:
Publicly traded companies and subsidiaries
Financial institutions (banks, credit unions), utilities, SEC-regulated entities
501(c)(3) nonprofits and educational institutions
Sellers of food, that exclusively sell non-alcoholic, non-supplement food or beverages, with no side merchandise or supplements
Brick-and-mortar retailers, that have been operating for 2+ years under same name and mostly make in-store sales
Businesses who have operated under the same name for at least 2 years, who reach out to current or former customers. Please note that “customer” isn’t clearly defined in the law, however.
So who is not exempt?
Brands selling supplements, animal food, alcohol or offer non-food products alongside food
Brands who messages target new leads, prospects or “cold” contacts who have never purchased
Brands that operate online-only and do not have a Texas physical retail presence
Brands not in the specifically listed regulated sectors above.
Be cautious, as these are narrow, legal‑cover only exemptions, and you're responsible for proving you qualify. If you're not certain, err on the side of caution and register anyway, as a means to avoid penalties.
What Are Your SB 140 Registration Requirements?
If you’re not exempt, you must:
Submit Form 3401 to the Texas Secretary of State. You can find that here.
Pay a $200 annual fee per business location.
Post a $10,000 security deposit via bond, CD or letter of credit. You can find that form here.
File quarterly reports on sales staff. You can review documentation on this here.
Appoint the Texas Secretary of State as your agent of service. You can find that form here.
Display your registration certificate in a visible business location.
Note: The “$10,000 bond” is often satisfied with a surety bond, truly costing only around $100 per year.
Why Should Marketers Care?
Lawsuits Are Easy to Trigger: Consumers can file suits without waiting for government enforcement, meaning that penalties can stack quickly!
Federal TCPA ≠ Enough: SB 140 is a state-level "mini-TCPA." These state laws usually copy the federal TCPA rules, but sometimes go even further, piling on stricter requirements and bigger penalties.
Operational & Messaging Impact: If you’re non-exempt, your brand must build robust consent/opt-out flows, document everything, honor quiet hours and potentially overhaul your sending logic.
Business Continuity Risk: Ignoring SB 140 might ultimately mean blocking your own Texas list, or worse, dealing with litigation.
Your SMS Compliance Action Steps
Here are the exact steps we recommend for every brand sending SMS marketing messages.
Audit your Texas list. Are you sending texts to any TX numbers?
Check your exemptions. Public company, food seller, brick-and-mortar, etc. Do you clearly qualify?
If you’re unsure, register. File Form 3401, pay your $200, secure that $10k bond, appoint the Secretary of State and plan quarterly reports.
Respect quiet hours. You can only text strictly between 9 a.m.–9 p.m. local time.
Implement rock-solid consent and opt‑out. “Reply STOP” must work instantly.
Document everything. This includes your consent logs, opt‑outs, message copies and registration certificate.
Talk to legal counsel and review your templates and disclosures. Compliance isn’t guesswork, as SB 140 lets consumers sue directly. Therefore, review everything with your counsel, including sender info, terms, TCPA compliance, 10DLC, etc. Remember that SB 140 is just one piece of the puzzle.
Communicate with your team. Everyone from copywriters to CRM specialists needs to know about these new time windows and rules!
An SMS Compliant Brand Is a Successful Brand
Sure, regulatory compliance isn’t the most fun thing in the world. But being proactive means your next SMS campaign doesn’t implode, and your brand doesn’t catch fire in court. Now, that’s a way to keep your brand having fun.
With SB 140 in effect currently, the smartest move isn’t cutting corners. It’s building sharper, cleaner, more confident SMS messaging, email messaging and more.
You can continue learning how to do just those things and more on the Backstroke blog.
Disclaimer: This content is for informational purposes only and should not be considered legal advice. Please consult your legal counsel for guidance specific to your business.
