Texas Senate Bill 140 (SB 140), effective September 1, 2025, expands the Texas Business & Commerce Code by treating text messages as “telephone solicitations”. The law also links violations of Chapters 302, 304, Texas No‑Call and caller ID, and 305, certain mobile‑call limits, to the Texas Deceptive Trade Practices Act (TDTPA), opening the door to enhanced remedies and uncapped repeat recoveries.
The takeaway for clients and marketers is clear: Unless an exemption applies, businesses conducting direct marketing must register with the Texas secretary of state, post a $10,000 security bond, and file quarterly reports before sending text messages to Texas consumers.
What the November Settlement Changed
In a November 2025 settlement resolving litigation over SB 140’s application to text messaging, Texas agreed that consent-based marketing texts that would otherwise trigger the law are exempt from Chapter 302’s telemarketing registration, bonding, and quarterly-reporting requirements.
As a result, well-run opt-in SMS programs previously subject to the law no longer need to register or post the $10,000 bond solely because they send marketing texts, provided the programs are genuinely consent-based and not a pretext for cold outreach. This is a meaningful win for compliant programs, but it is not a free pass.
Chapters 304 and 305 remain fully in force, and the TDTPA linkage remains intact. Marketers must continue to comply with the Texas No-Call law for text messages, including scrubbing the No-Call list and honoring the 60-day prohibition window after numbers are added. Caller ID spoofing or interference is prohibited.
Any compliance failure, or any deceptive or misleading content, may trigger private litigation under the TDTPA. Federal law remains unchanged, so programs must continue to comply with the Telephone Consumer Protection Act (TCPA) consent standards and promptly honor opt-out requests.
How to Operate Consent-Based Programs in Texas
Statements by the attorney general in the settlement reflect enforcement intent but do not create binding precedent for courts or nonparties. Courts may interpret SB 140 differently, and private litigants may continue to bring TDTPA or other state-law claims.
For opt-in programs, organizations may forgo Chapter 302 registration and bonding in Texas while strengthening the controls that most directly affect risk:
- Explicit and informed consent capture
- Clear disclosures at or before sign-up
- Robust opt-out mechanics
- Message content that avoids deception or harassment
Because the settlement is nonbinding, organizations should memorialize their reliance in a short internal memorandum describing consent workflows, opt-out processing, and vendor governance, and maintain an auditable record of consent timestamps, disclosure screenshots, and suppression-list synchronization.
Direct marketing that includes prospecting, third-party lead lists, or texts without prior consent remains subject to Chapter 302. Companies deploying such marketing on their own behalf should register with the secretary of state, post the $10,000 bond, and file quarterly reports unless a separate statutory exemption applies.
Lingering Ambiguities and How to Manage Them
Two issues remain unresolved. First, the “former or current customer” exemption in Section 302.058 is risky because the statute does not define “customer”. Organizations relying on this exemption should apply defensible criteria and document the basis for inclusion.
Second, SB 140’s reference to outreach to “a purchaser located in this state” creates uncertainty, given real-time location challenges in SMS messaging. These risks are best managed conservatively by maintaining strong consent for Texas numbers, scrubbing against the No-Call list, and documenting compliance decisions.
A Short Compliance Checklist
- Texas No‑Call. Chapter 304 applies to text messages sent to mobile numbers. Do not send marketing texts to numbers on the list more than 60 days after they appear, and caller‑ID spoofing or interference is prohibited.
- Marketing Alignment. Align on registration determinations or well‑documented exemptions, consent standards and proof, No‑Call scrubbing, opt‑out mechanics, disclosure placement (e.g., landing pages before purchase), and cadence controls. Vendor agreements should require compliance with Chapters 301–305 and the TCPA, mandate record retention, provide audit rights, and require prompt notice of complaints.
- Quiet Hours. Although Chapter 301 applies to voice calls, adopting quiet hours outside of 9 a.m. to 9 p.m. Monday through Saturday and noon to 9 p.m. Sunday (Central Time) for text messaging is a conservative risk‑reduction measure.
- Section 302.058 Exemptions. If you solicit only former or current customers and have operated under the same name for at least two years, you may be exempt from Chapter 302 registration. Because “customer” is undefined, you should document the factual basis for any exemption. For a comprehensive list of other exemptions, see: Business and Commerce Code Chapter 302.
- Record‑keeping. Maintain auditable files covering consent capture and revocation, No‑Call subscriptions and 60‑day scrubs, internal do‑not‑contact lists, message content and links, landing‑page disclosures, quiet‑hour controls, registration status and bonds, and complaint logs. Strong records reduce TDTPA exposure and support defenses under state and federal law.
While the settlement meaningfully lowers Chapter 302 risk for true opt-in SMS programs in Texas, the safest course is to maintain rigorous consent practices, No-Call discipline, and strong vendor governance. Until courts or regulators provide formal guidance, treat the settlement as a persuasive safe harbor and operate Texas texting programs with heightened care.
Varnum’s Corporate and Data Privacy and Cybersecurity Practice Teams continue to monitor developments related to SB 140 and Texas telemarketing enforcement. If you have questions about how these changes affect your text messaging, marketing, or compliance programs, please contact a member of the Varnum team to discuss practical next steps.
