Texas is known for doing things big, and that now includes its telemarketing regulations. A new state law, Senate Bill 140 (SB 140), is set to take effect on September 1, 2025, and it's a game-changer for any business that engages in SMS marketing to Texas residents.
This isn't a minor update—SB 140 significantly broadens the scope of what's considered telemarketing, introduces new litigation risks, and increases penalties for non-compliance.
Here's what marketers need to know about the new law and its potential impacts.
This blog post is for informational purposes only and is not legal advice. The new law has complex language and introduces significant risk. An important step in protecting your business is to consult your legal counsel.
What Changed with SB 140?
The key changes in the new law are designed to give Texas consumers more power and protection against unwanted marketing communications.
A Broader Definition of "Telephone Solicitation"
The most significant change for marketers is the expansion of the term "telephone solicitation." Under the old law, it primarily referred to voice calls. SB 140 now explicitly includes:
- Text messages
- Image messages
- Other digital transmissions
This means SMS and MMS marketing campaigns are now subject to the same strict rules as traditional telemarketing calls.
Expanded Private Right of Action
SB 140 creates a new private right of action under the Texas Deceptive Trade Practices Act (DTPA). This means that consumers can now sue businesses directly for violations of telemarketing laws, including:
- Calling numbers on the Texas "Do Not Call" list.
- Failing to honor opt-out requests.
- Using automated dialing equipment without proper consent.
The financial stakes are high, with potential damages ranging from $500 to $10,000 per violation, and the possibility of treble damages for intentional misconduct. A consumer can also file multiple lawsuits for repeated violations.
New and Expanded Registration Requirements
The law also reinforces existing telemarketer registration requirements. If your business is making telephone solicitations from Texas or to Texas residents, you may need to register with the Texas Public Utility Commission.
The application fee is $200, and registration requires that businesses post a $10,000 security deposit in the form of a bond executed by a corporate security, an irrevocable letter of credit, or certain certificates of deposit.
There are some exemptions, but failure to register can result in a fine of $5,000 per violation.
Key Compliance Considerations
So, what now?
First, take a deep breath. The spirit of the law is to protect consumers from unsolicited communications.
To adapt to these changes, here are some areas to consider reviewing:
Consult Your Legal Team
First things first, consult your legal team.
While we can provide information and areas to consider, this blog post is for informational purposes only and is not legal advice. The new law has complex language, and an important step in protecting your business is to consult your legal counsel.
They can provide specific guidance on whether your business falls under the new law's registration requirements and can help you navigate the nuances of the legislation to ensure you are fully compliant.
Review Your Consent Method
Ensure you have a clear, documented process for obtaining and tracking consent for all your SMS marketing communications. If you’re using Drip SMS, we provide opt-in confirmation and a record of consent for anyone who opts in through a Drip form.
Follow Best Opt-In Practices 
Some of these best practices are built into Drip SMS, such as ensuring subscribers clearly understand your SMS terms and providing a clear way to opt out of messages. You can also use double opt-in to confirm a user's subscription.
Review Your Opt-Out Process
Make sure your opt-out process is seamless and that you honor all requests promptly.
For Drip SMS users, we automatically opt out anyone who replies STOP, STOPALL, UNSUBSCRIBE, CANCEL, END, or QUIT to your SMS number. We also send an opt-out confirmation message immediately after a subscriber opts out.
The landscape of marketing regulations and consumer privacy is constantly evolving. At Drip, we’ll be here to give you the information you need every step of the way.
