Effective Date: September 1, 2025 (Less than 3 days away!)
Hey everyone! With Texas SB 140 taking effect in just a few days, we wanted to share a detailed breakdown of exactly what we need to do to stay compliant. This isn’t just another regulatory update - the penalties are severe and the law allows for repeated lawsuits against non-compliant businesses.
To read a detailed analysis of the Texas Senate Bill 140, see Texas Senate Bill 140: Major Changes to Text Message Marketing Laws.
🎯 Quick Risk Assessment: Do These Apply to You?
- ✅ Send SMS/MMS marketing messages to Texas residents?
- ✅ Use automated text messaging platforms?
- ✅ Collect phone numbers through website forms, contests, or purchases?
If you answered yes to any of these, keep reading. The new law treats text marketing the same as telemarketing with full registration and compliance requirements.
📋 COMPLIANCE CHECKLIST - Action Items by Priority
🔥 IMMEDIATE (Complete by August 30th)
1 - Registration Assessment & Filing
Who needs to register?
- Any business sending marketing texts to Texas residents
- Exemptions are VERY limited (see exemption section below)
Registration Requirements:
- Form: Texas Secretary of State Form 3401
- Fee: $200 annual fee
- Bond: $10,000 security deposit (surety bond is most cost-effective option)
- Documentation: Business details, owner info, ALL sales scripts, marketing materials
⚠️ Pro Tip: Don’t assume you’re exempt. The burden of proof is on YOU to demonstrate exemption eligibility.
2 - Consent Form Overhaul
Current consent forms are likely non-compliant. Here’s what you need:
Required Elements:
- Clear statement about automated messaging
- Disclosure of message/data rates
- Explicit opt-in language
- Checkboxes MUST be unchecked by default
- Consent cannot be required for purchase
Sample Compliant Language:
☐ I agree to receive automated marketing messages from [Company] at this number.
Message and data rates may apply. I understand this consent is not required
for any purchase. Reply STOP to opt out.
3 - Opt-Out System Audit
Requirements:
- Must honor “STOP” and “UNSUBSCRIBE” immediately
- No manual processing delays allowed
- Must work 24/7/365
- Confirmation message allowed but not required
Test Your System:
- Send yourself a marketing text
- Reply “STOP”
- Verify immediate removal from all lists
- Try sending another message - should be blocked
🔥 HIGH PRIORITY (Complete by September 15th)
4 - Time Zone Controls Implementation
Texas Quiet Hours (stricter than federal):
- Monday-Saturday: 9:00 AM - 9:00 PM
- Sunday: 12:00 PM - 9:00 PM
- Based on RECIPIENT’S time zone (not your business location)
Implementation Strategy:
- Audit your customer database for Texas addresses
- Flag Texas residents in your CRM/messaging platform
- Set up automated sending restrictions
- Test with different time zones
5 - Texas No-Call List Scrubbing
Requirements:
- Scrub against Texas No-Call List every 60 days
- Also scrub Electric No-Call List
- Must be done before EACH campaign
Process:
- Download current Texas No-Call lists
- Cross-reference with your messaging database
- Remove matches immediately
- Document the scrubbing date and results
- Set calendar reminders for every 60 days
6 - Record-Keeping System Setup
You MUST document:
- All consent records with timestamps
- Opt-out requests and processing times
- Message content and send times
- Texas No-Call list scrubbing dates
- Any exemption claims and supporting evidence
Recommended Tools:
- CRM integration with compliance flags
- Automated logging systems
- Regular backup procedures
- Legal-hold capabilities for litigation
🔥 ONGOING (Implement by October 1st)
7 - Staff Training Program
Who needs training:
- Marketing teams
- Sales staff
- Customer service
- IT/platform administrators
- Legal/compliance teams
Training Topics:
- New penalty structure ($500-$5,000 per violation + treble damages)
- Successive recovery risk (can be sued multiple times)
- Proper consent collection
- Opt-out handling procedures
- Quiet hours compliance
- Documentation requirements
🛡️ EXEMPTION ANALYSIS - Are You Actually Exempt?
Most Relevant Business Exemptions are:
Existing Customer Exemption
Requirements:
- Contacting current or former customers only
- Operating under same business name for 2+ years
- Must prove customer relationship
⚠️ Warning: “Former customer” isn’t clearly defined. When does someone stop being a former customer? Legal counsel recommended.
Brick-and-Mortar Retail Exemption
Requirements:
- Physical retail location
- Same business name for 2+ years
- Majority of sales occur at physical location (not online)
Documentation Needed:
- Sales records proving majority in-store
- Lease agreements
- Business registration history
Regulated Business Exemption
- Banks and financial institutions
- Insurance companies (for insurance-related communications)
- Public utilities
- Educational institutions
- 501(c)(3) nonprofits
Product/Service-Specific Exemptions
Food Marketing
- Businesses marketing the sale of food are exempt
- Includes restaurants, food delivery, grocery stores
Subscription Services
- Daily or weekly newspaper subscriptions
- Magazine subscriptions
- Cable television service sales
Pre-Consented Recurring Merchandise
- Subscription boxes or auto-delivery services
- Consumer must have consented to periodic shipments in advance
Catalog Distributors
- Must meet ALL these specific criteria:
- Written description and price for each item
- At least 24 pages minimum
- Distributed in more than one state
- Issued periodically (not one-time catalogs)
🚩 RED FLAGS - Stop Immediately If You’re Doing These
- Sending texts without explicit SMS consent
- Using pre-checked consent boxes
- Requiring text opt-in for purchase completion
- Manual processing of STOP requests
- Sending outside quiet hours to Texas residents
- Not scrubbing No-Call lists
- Assuming you’re exempt without documentation
📞 RESOURCES & NEXT STEPS
Immediate Actions:
- Audit current practices against this checklist
- Consult legal counsel for exemption analysis
- Complete registration if required
- Implement all compliance measures
- Review your newly acquired SMS subscribers. A “Texas recipient” is based on residence, not on area code of the recipient’s mobile number.
Helpful Resources:
- Texas Secretary of State business services
- Texas No-Call List registry
- Legal counsel specializing in TCPA/telemarketing law
- Compliance automation platforms
Questions for Your Legal Team:
- Does our customer definition qualify for exemption?
- Are our current consent forms compliant?
- What documentation do we need for audit defense?
- Should we register even if we think we’re exempt?
🤝 Discussion Questions
- What compliance strategies are others implementing?
- Has anyone found good automated scrubbing services?
- What’s your experience with surety bond providers?
Remember, this law is designed to encourage ongoing compliance rather than one-time settlements. The successive recovery provision means you can be sued repeatedly for continued violations. Better to over-comply than risk ongoing litigation exposure.
Disclaimer: This is not legal advice. Consult with qualified legal counsel for your specific situation.
