Texas SB 140 Regulates SMS Marketing Effective September 1, 2025
The Texas state legislature has enacted SB 140 treating SMS/MMS text marketing compliance the same as traditional telemarketing under Texas law (Texas Telephone Solicitation Act, or “TTSA”), with penalties for non-compliance effective September 1, 2025. Changes include:
- The definition of “telephone solicitation” is now applicable to text messaging
- Unless you’re exempted, SMS/MMS marketing now requires state registration
- A $10,000 security deposit is required
- Penalties up to $5,000 per text message
If you are uncertain whether individuals on your marketing list are in Texas, we encourage you to consider registering with the state of Texas or removing them from your list until you can confirm their location.
Compliance Requirements
Starting September 1, 2025, all affected businesses must register with the Texas Secretary of State before sending any marketing texts to Texas residents. Registration includes:
- Filing Form 3401 annually with the TX Secretary of State
- A $200 fee per business location each time Form 3401 is submitted
- A $10,000 security deposit (surety bond, letter of credit, or certificate of deposit)
- Filing a form to appoint the Secretary of State as the Agent of Service
- Additional documentation
Failure to Register
Under the amended TTSA, consumers can sue businesses directly for violations:
- Consumers can file an immediate lawsuit if/when a business violates the TTSA, including registration rules, calling/texting times, honoring opt-outs, or numbers on the Texas Do-Not-Call list.
- ]Consumers are not required to report the violation to the Texas Attorney General or another agency before suing.
- Consumers can seek actual damages, up to three times those damages for intentional or knowing violations, and recover their attorneys’ fees.
- In addition to civil penalties of up to $5,000 / violation (and $25,000 / violation of any injunction), the amendments authorize criminal prosecution for knowingly sending unregistered solicitations and allow DTPA remedies, including damage for mental anguish.
- Each violation can be the basis for a separate lawsuit if the business continues to violate the law.
Exemptions from the Law
Not all businesses and/or messaging are impacted by this new law. Exemptions include:
- Educational institutions
- 501(c)(3) nonprofits
- Businesses marketing the sale of food
- Certain publicly traded companies and their subsidiaries
- Certain financial institutions
- Retail sellers with brick and mortar locations if they’ve operated under the same name for the last two years and most of their sales occur at retail outlets
- Businesses contacting current or former customers, if the business has operated under the same name for the last two years
Given the high penalties for noncompliance, however, Commio strongly encourages you to consult with legal counsel before continuing to utilize text messaging to communicate with customers in Texas.
Additional Messaging Compliance Considerations
While the above requirements are only applicable to the state of Texas, please remember that all SMS/MMS marketing must be compliant with the Telephone Consumer Protection Act (TCPA). These include, but are not limited, to obtaining clear, documented consent for all marketing and calls; maintaining current opt-in language with message frequency, data rates, and opt-out instructions; honoring opt-out requests promptly; and ensuring your entire staff is trained in the latest requirements. Commio also encourages double opt-ins.
If you have any questions or concerns about your opt-in processes, the Commio Customer Support team is happy to assist you.
Please note: This information is not a substitute for legal advice. If you send SMS marketing to businesses in Texas, we encourage you to consult with your legal counsel to ensure compliance with the new bill.
