đź“‘ Table of Contents
Texas has introduced new requirements that every business using text or voice marketing should know. The state has amended its long-standing Texas Telephone Solicitation Act (TTSA) under Senate Bill 140 (SB 140), which takes effect on September 1, 2025.
This update greatly expands the scope of telemarketing regulations. For the first time, it applies not only to phone calls but also to text messages and other forms of digital outreach directed at Texas residents. If your business markets to Texas customers through SMS, these new rules directly affect you.
Who Must Register Under the TTSA
Any company that operates in Texas or markets to Texas residents—including through text-based promotions—must register as a telemarketer by September 1, 2025. Failing to register can lead to significant financial penalties and even criminal charges.
If you’re unsure whether your business qualifies, assume it does until you confirm otherwise. The penalties for getting this wrong can be steep.
Who Is Exempt from Registration
Not all organizations are required to register. The TTSA includes several important exemptions, such as:
- Publicly traded companies
- Certain financial institutions (like banks and credit unions)
- Nonprofit organizations
- Educational institutions
- Businesses selling food products
- Retailers with physical stores operating under the same name for at least two years, where most sales happen in-store
If your business fits one of these categories, you may not need to register—but you should still confirm with legal counsel before proceeding.
How to Register Under the TTSA
If you determine that your company must register, take these steps right away:
- Access the required forms on the Texas Secretary of State’s website.
- Submit an annual registration with the Secretary of State.
- Pay a $200 registration fee for each business location.
- Provide a $10,000 surety bond, letter of credit, or certificate of deposit. You’ll find templates for these on the state’s website.
- Appoint the Secretary of State as your Agent of Service by filing the designated form.
Acting early helps you avoid last-minute processing delays and ensures your compliance before the September 1, 2025 deadline.
What Happens If You Don’t Register
The amended TTSA now gives consumers direct power to sue businesses that violate these rules. Unlike before, they don’t need to file a complaint with a government agency first—they can go straight to court.
Here’s what that means:
- Immediate Lawsuits: A consumer can sue your business for any violation, including registration failures, improper texting times, ignored opt-outs, or contacting numbers on the Texas Do-Not-Call list.
- No Agency Prerequisite: There’s no need for them to report the violation to the Attorney General first.
- Expanded Damages: Consumers can recover actual damages and up to three times those damages if the violation was intentional. They can also claim attorney fees.
- Enhanced Penalties: Civil penalties can reach $5,000 per violation and $25,000 per violation of any court injunction. Knowing, unregistered solicitations can even lead to criminal prosecution (a Class A misdemeanor).
- Multiple Lawsuits Possible: A single consumer can sue multiple times if your company continues to break the rules.
The takeaway is clear: compliance isn’t optional. It’s now a legal and financial necessity.
Federal Laws Still Apply
Even if you comply with Texas’s TTSA, you still need to follow federal regulations under the Telephone Consumer Protection Act (TCPA).
The TCPA requires express written consent for most promotional texts or automated calls. Ignoring it can lead to hefty fines and class-action lawsuits. In other words, compliance must happen on both the state and federal levels.
Best Practices for Compliance
Meeting the registration requirement is only the beginning. To reduce your risk further, adopt these proactive measures:
1. Segment Your Audience
Identify Texas residents in your contact lists. If you’re uncertain about a customer’s location, it’s safer to treat them as covered by the TTSA.
2. Obtain Clear Consent
Collect explicit, written consent before sending any marketing texts. Keep proof of each consent—include the date, time, IP address, and the language used when the user opted in.
3. Update Your Opt-In Language
Be transparent. Let users know that messages may be sent through automated systems, that consent isn’t required for purchase, and that message frequency and data rates may apply. Always include a simple opt-out method like “Reply STOP to cancel.”
4. Use Double Opt-In
Add an extra layer of confirmation. Have users reply “YES” or a similar keyword before you start sending texts. This step helps protect you from claims of unsolicited messaging.
5. Respect Opt-Outs Immediately
When someone opts out, remove them from your marketing list right away. Sending even one more text after an opt-out can count as a violation.
6. Follow Quiet Hours
Only send marketing messages during permitted hours—between 9 a.m. and 9 p.m. on weekdays and Saturdays, and no earlier than noon on Sundays. Avoid numbers on the Texas Do-Not-Call List.
7. Review Vendor and Platform Contracts
If you use SMS platforms or third-party vendors, ensure their practices align with Texas and federal laws. Require indemnification clauses to protect your business from compliance failures.
8. Train Your Teams
Educate all marketing, sales, and customer service staff about these new rules. They should understand how the TTSA defines “telephone solicitation,” how to manage opt-outs, and why documentation is crucial.
9. Keep Detailed Records
Maintain complete records of all compliance activities—registration confirmations, surety bonds, opt-ins, opt-outs, and customer communications. These records will be vital if your business ever faces a complaint or lawsuit.
Final Thoughts
The 2025 TTSA amendment changes the game for SMS and digital marketers targeting Texas audiences. With the new rules in place, non-compliance could cost far more than compliance.
By registering on time, maintaining accurate records, and respecting customer consent, your business can continue using SMS marketing confidently and lawfully.
Don’t wait until the last minute—start the process now to protect your brand and avoid costly penalties when the law takes effect on September 1, 2025.