Effective Date: September 1, 2025
Also called: Texas "Mini-TCPA" expansion, SB 140, Telemarketing / Solicitation Reform
Introduction: Why SB 140 Matters
Texas is raising the stakes for marketers who reach customers in the state. Starting September 1, 2025, Senate Bill 140 (SB 140) expands and sharpens Texas's existing telemarketing and solicitation laws to explicitly cover texts, multimedia messages, and modern marketing outreach.
For digital marketers, agencies, e-commerce brands, and service providers, noncompliance could lead to lawsuits, steep fines, and reputational damage. This guide is your go-to resource for understanding SB 140, its impact on marketing, and how Fawkes Digital Marketing can help clients navigate compliance while still growing.
Quick TL;DR
- SB 140 amends Texas Business & Commerce Code Chapters 302, 304, and 305 to broaden definitions and enforcement.
- It makes text messages, images, and multimedia communications count as "telephone solicitations" in many cases.
- It introduces (or strengthens) a private right of action under Texas's Deceptive Trade Practices Act (DTPA).
- It removes limits on repeated recovery (i.e. prior lawsuits don't block future claims).
- Marketers must register, disclose, monitor opt-outs, and review vendor contracts.
What Is SB 140?
Legislative Context & Purpose
Texas already had a set of telemarketing statutes (often called a "mini-TCPA") under Chapters 301–305 of the Business & Commerce Code. SB 140 augments these laws by (1) refining definitions, (2) expanding the types of communication regulated, and (3) widening enforcement tools, especially private litigation. Paul Hastings
Its stated purpose is to protect consumers from "false, misleading, or deceptive practices in telephone solicitation" by making the law more inclusive and harder to evade. Texas Legislature Online
Key Definitions (Before & After)
- Term: Telephone call / "telephone solicitation"
- Pre-SB 140: Historically, a voice call or automated dialing to induce purchase or claim.
- Post-SB 140 (as amended): Now includes not only calls, but transmissions (text, graphic message, images) initiated by a seller or salesperson for inducing a purchase or claim. OneSignal
- Term: Telephone solicitation
- Pre-SB 140: A call initiated to induce someone to buy, rent, or receive something.
- Post-SB 140 (as amended): Expanded to include texts, image or graphic transmissions, and other communications beyond voice calls. Lowenstein Sandler
- Term: "False, misleading, or deceptive act"
- Pre-SB 140: Already a concept in various telemarketing rules or DTPA.
- Post-SB 140 (as amended): Violations under Chapters 302, 304, and 305 are now explicitly deemed such under the DTPA, enabling private rights of action. National Law Review
- Term: Prior claim immunity
- Pre-SB 140: Some limitations or thresholds in earlier statutes.
- Post-SB 140 (as amended): SB 140 specifies that past recoveries do not limit future recovery — each violation (even repetitive) can be actionable. National Law Review
Who Must Comply & Who's Exempt
Any entity that makes "telephone solicitations" (now including texts, image transmissions, etc.) into or from Texas, for sales or inducement purposes, must comply — unless a specific exemption applies. Nixon Peabody LLP
Some commonly cited exemptions include (but may not be limited to):
- Publicly traded companies
- Certain financial institutions
- Educational institutions or nonprofits (501©(3))
- Retail sellers that conduct most of their sales from brick-and-mortar stores and have been under the same name for at least two years
- Communications to current or former customers under specific conditions Lowenstein Sandler
Because exemptions are narrowly construed, businesses should assume compliance is required unless a clear exemption applies — and be ready to prove it.
Understanding the theory is one thing; deadlines and obligations are what marketers must operationalize. Below is a framework of the requirements triggered by SB 140.
Registration, Bond, and Disclosure Obligations
- Registration: Businesses engaged in solicitation mustregister as a "seller" with the Texas Secretary of State (including location-specific registration). Paul Hastings
- Application Fee + Bond / Security: The law mandates a registration fee (commonly cited as ~$200) plus a $10,000 security deposit / bond or equivalent instrument. Nixon Peabody LLP
- Annual Renewal & Reports: Registration must be renewed periodically, and businesses must file reports listing salespersons (and their addresses) engaged in solicitations. Nixon Peabody LLP
- Posted Disclosures & Certificates: The legislation may require businesses to physically post or display the registration certificate, and provide certain disclosures before or during calls / messages. Nixon Peabody LLP
Consent, Opt-Out, and Messaging Rules
- Prior Consent Required: For both voice and text solicitations, proper consent must be secured before outreach. The standard of consent must align with the more stringent telemarketing regime. Listrak
- Clear Disclosures: Consent and messages must include required disclosures (such as opt-out language, identity, purpose). ActiveCampaign Help Center
- Opt-Out/Do Not Call (DNC): Must respect and implement opt-outs immediately. Messages to numbers on the Texas no-call list are prohibited. Nixon Peabody LLP
- Quiet Hours (Implicit / Interpreted): While SB 140 did not explicitly revise the statutory quiet hours (9 a.m.–9 p.m. Mon–Sat; 12 p.m.–9 p.m. Sunday) under Chapter 301, many legal commentators believe that the expanded definition of calls/texts allows those hours to be extended to text solicitation. Nixon Peabody LLP
Enforcement, Penalties & Litigation Risk
- Private Right of Action under DTPA: One of the biggest changes is that SB 140 makes violations under Chapters 302, 304, and 305 actionable under the Texas Deceptive Trade Practices Act (DTPA). This gives consumers direct lawsuit access. Nixon Peabody LLP
- No Limitation from Prior Claims: SB 140 removes the barrier that prior successful claims limit future lawsuits — every violation can be litigated independently. National Law Review
- Statutory Damages & Fines:
- Texas AG can seek civil penalties up to $5,000 per violation. Texas Legislature Online
- Consumers may recover statutory damages (often cited $500–$1,500) and may have treble (triple) damages for knowing or intentional violations, plus attorneys' fees and mental anguish in some cases. ActiveCampaign Help Center
- Serial Litigation Risks: Because prior claims do not block future claims, businesses are exposed to repeated litigation by the same consumer if violations persist over multiple communications. Nixon Peabody LLP
SB 140 vs Other Privacy & Telemarketing Laws
It's helpful to see how SB 140 fits into the broader landscape of U.S. privacy, telemarketing, and consumer protection laws.
- Regime / Law: Federal TCPA (Telephone Consumer Protection Act)
- Coverage / Purpose: Regulates dialing equipment, consent, auto-dialers, robocalls, fax, prerecorded messages at the federal level
- Key Differences from SB 140: TCPA focuses mainly on calls, texts, robocalls, and includes strict consent regimes; SB 140 is state-level and adds extra layers (registration, bond, DTPA claims)
- Implications for Marketers: Compliance with TCPA is baseline; SB 140 adds "state tax" you must satisfy for Texas outreach
- Regime / Law: California CCPA / CPRA
- Coverage / Purpose: Data privacy, rights over personal data (access, deletion, sale)
- Key Differences from SB 140: CCPA/CPRA is broad data-privacy law; SB 140 is specifically about solicitations, calls, texts
- Implications for Marketers: Even if you're compliant under CCPA, SB 140 imposes distinct telemarketing obligations
- Regime / Law: Other State Mini-TCPA Laws (e.g. Florida, Washington)
- Coverage / Purpose: State-level telemarketing / text message rules
- Key Differences from SB 140: Many don't require registration, bonding, or DTPA-level enforcement
- Implications for Marketers: Texas SB 140 is among the more aggressive and compliance-heavy state regimes
- Regime / Law: Texas Pre-existing Laws (Chapters 301–305)
- Texas's original telemarketing and solicitation rules SB 140 redefines and extends scope, eases litigation, tightens enforcement Businesses targeting Texas must reevaluate (not just assume old compliance suffices)
One key takeaway: compliance under federal or other state rules does not guarantee compliance under SB 140.
Impact on Digital Marketing Channels
If your campaigns use any of the following channels targeting Texas consumers (or originating from Texas), SB 140 likely impacts your operations:
SMS, MMS & Mobile Messaging Campaigns
Text-based marketing now squarely falls under telemarketing law in Texas. Without careful consent tracking, registration, and opt-out handling, your campaigns may violate SB 140. Listrak
Telephony / Voice Calls
Outbound voice solicitation calls made for sales or inducement must also comply with telemarketing registration, disclosures, and consumer rights. The expansion into multimodal "calls" ensures no loophole for voice + message hybrid channels. Nixon Peabody LLP
Automated & AI-Driven Outreach
Calls or messages powered by autodialers, AI agents, or automated systems are considered "telephone solicitations" under the expanded definitions. That means your compliance must extend to the tech layer. Nixon Peabody LLP
Lead Generation & Data Capture Forms
Where you collect phone numbers or consent, you must clearly state how the phone number and text consent will be used, including disclosures about automated messaging. Also, opt-out must be honored.
Retargeting, Pixel Tracking & Personalization
While SB 140 is narrowly about telemarketing, privacy compliance trends are converging. Marketers should ensure data collection, profiling, and email/SMS integrations align with broader privacy expectations and state laws.
What Marketers Must Do Now
Here's a practical compliance roadmap for marketing teams and agencies:
Phase 1: Discovery & Audit
- Map Data Flows & Outreach Paths: Document where, how, and why you contact customers via phone or text.
- Review Current Consent Policies: Are they explicit, recorded, and do they include required disclosures?
- Inventory Vendors & Partners: CRMs, SMS platforms, ad networks — check whether they handle opt-outs, data sharing, and compliance.
- Check No-Call / Do-Not-Call List Practices: Ensure your database excludes Texas no-call numbers.
- Identify Exemptions: Determine whether your business qualifies for any exemption and document why.
Phase 2: Implement Controls & Updates
- Register & Post Bond: If required, complete registration with the Texas Secretary of State, pay fees, and secure the $10,000 bond (or equivalent).
- Update Privacy / Terms / Messaging Disclosures: Make sure consent forms, messages, and web language align with SB 140.
- Update Tech / Messaging Systems: Integrate real-time opt-out, SMS suppression lists, and flag Texas numbers.
- Train Sales, Marketing & Support Teams: They must understand consent handling, opt-outs, and DNC obligations.
- Log Everything: Maintain robust records of consent,communications, opt-outs, and suppression logic.
Phase 3: Monitoring, Testing & Legal Review
- Simulate Outreach Tests: Test messaging flows, opt-outs, registration, and suppression logic.
- Schedule Audits & Reviews: Monthly or quarterly checks to confirm compliance is maintained.
- Legal Oversight: Engage legal counsel to review your registration, exemptions, messages, and contracts.
- Stay Updated: Monitor enforcement, case law, AG guidance, and regulatory updates.
Penalties, Risks & Litigation Scenarios
Types of Exposure
- Civil Penalties by State AG: Up to $5,000 per violation. Lowenstein Sandler
- Statutory Damages / Consumer Lawsuits (via DTPA): $500–$1,500 per violation; increased damages if willful; attorneys' fees, mental anguish compensation. Nixon Peabody LLP
- Repeated Litigation Risk: Because previous claims don't preclude future ones, a consumer might sue multiple times for recurring or batch violations. National Law Review
- Reputational Damage: Negative press, class action headlines, and trust erosion.
Example Scenarios
- A business sends marketing texts to Texas numbers without registering or suppressing opt-outs → consumer sues under DTPA, multiplies claims.
- A company sends SMS-based promotions after a user opted out, or to a number on Texas no-call list → immediate legal exposure.
- A firm uses AI-driven autodialer systems for outreach without updating compliance logic → technical misstep leads to mass violations.
These are not hypothetical — legal commentators expect a wave of litigation once SB 140 is in effect. Nixon Peabody LLP
Fawkes Digital Marketing's Compliance & Service Approach
Here's how Fawkes Digital Marketing positions itself to help clients tackle SB 140 proactively:
Compliance-First Strategy
- Begin every campaign with a data and outreach audit to identify Texas exposure.
- Build consent-first messaging pipelines, integrating SMS, email, web, and CRM flows.
- Maintain ongoing opt-out management, suppression lists, and message templates that align with registration disclosures.
Support & Implementation
- Assist clients with Texas registration (forms, bond, reporting strategy).
- Review and revise messaging, disclaimers, and consent language for SB 140 alignment.
- Coordinate with legal counsel to validate exemptions or risk tolerance.
- Provide training to marketing, sales, and support teams on handling opt-outs, DNC, and compliance basics.
- Monitor and audit campaigns post-launch for compliance drift.
Marketing with Privacy as a Differentiator
Rather than viewing SB 140 solely as a burden, Fawkes frames privacy compliance as a trust and branding advantage. A business that honors consumer-safety, consent, and transparency positions itself favorably in a crowded, skeptical marketplace.
FAQs About Texas SB 140
- : Do small businesses need to comply?
A: Possibly — size is not a safe harbor. If your business makes solicitation calls or texts into Texas or from Texas, the law likely applies unless you clearly qualify for an exemption. - Q: Does SB 140 apply to companies outside Texas?
A: Yes. Any entity sending messages into Texas or operating from Texas for solicitation purposes issubject to SB 140.Lowenstein Sandler - Q: Are non-promotional calls (reminders, surveys) affected?
A: Possibly. If the content is construed as solicitation or inducement, it may trigger the rules. Be cautious and seek legal guidance. - Q: What's the deadline?
A: September 1, 2025 — that's when the law becomes effective.Paul Hastings - Q: What if a marketing platform provider vs. brand is liable?
A: Both may share liability. The brand must vet platforms' compliance, and use APIs or features that conform to opt-out, suppression, and consent obligations.
Conclusion & Call to Action
Texas SB 140 substantially raises the bar for marketers. The rules are stricter, enforcement is stronger, and litigation risk is more accessible for consumers. But compliance is not optional — it's essential.
Viewed through the right lens, SB 140 is not just a regulatory hurdle — a chance to build consumer trust, differentiate through responsible practices, and fortify your brand.
If you're marketing to Texas consumers, now is the time to act. Let Fawkes Digital Marketing help you audit your outreach, update infrastructure, and execute compliant, growth-driven marketing that stands up under scrutiny.