Texas Expands Telemarketing Law: SB 140 Takes Effect September 1, 2025
By Adriana Lopez-Ortiz, Esq.
Attorney at Coleman Greenberg Business Law
Effective September 1, 2025, Texas Senate Bill 140 (“SB 140”) will reshape telemarketing regulation in the state. The law amends key provisions of the Texas Business & Commerce Code (Chapters 301–305, known collectively as the “Texas Mini-TCPA”) and applies both to companies reaching out to Texas residents and to businesses placing calls or texts from within Texas.
Like other state “mini-TCPAs,” SB 140 is modeled on the federal Telephone Consumer Protection Act (TCPA) but adds its own compliance hurdles. These laws raise the risk of lawsuits, as both consumers and regulators gain new enforcement tools.
The Rise of State “Mini-TCPAs”
States across the country have adopted or expanded telemarketing restrictions in recent years. Some mirror the TCPA, while others go further, creating unique state-level compliance burdens. Businesses that market nationwide must now navigate an increasingly fragmented regulatory landscape. Texas joins this trend with SB 140, which significantly broadens what qualifies as a “telephone solicitation.”
Four Key Features of SB 140
1. Quiet Hours and Updated Definitions
Amendments to Section 301 add restrictions on when calls and texts may be made (“quiet hours”), adjust rules on telemarketing content, and expand the definition of an “automated dial announcing device” (ADAD). Consumers retain a private right of action, with damages that may be tripled for willful violations.
Permitted calling and texting times under Section 301.051 of the Texas Business & Commerce Code are:
· Monday–Saturday: 9:00 a.m. to 9:00 p.m.
· Sunday: 12:00 p.m. (noon) to 9:00 p.m.
These time restrictions now explicitly apply not only to voice calls but also to text messages (SMS) and similar outreach under SB 140. That means marketing texts cannot be sent outside these hours unless an exception applies.
2. Registration Requirements and Customer Exemption
One of the most significant changes under SB 140 is the registration mandate in Section 302.
Who must register?
Any business that makes telemarketing calls or sends marketing texts to Texas residents or from Texas must register with the Secretary of State — unless an exemption applies.
Available exemptions:
The law provides several exemptions (for example, certain regulated industries and nonprofit organizations), but the exemption that will be most relevant for typical business-to-consumer businesses is the one for former or current customers.
What does “customer” mean?
Although Chapter 302 does not define the term, Texas courts interpret undefined words by their plain meaning. In this context, “customer” likely refers to someone who has actually purchased goods or services.
✔ Former or current customers = people who have completed a purchase from your business.
❌ Not customers = newsletter signups, abandoned cart users, or prospects who never purchased, even if they opted in to receive messages.
What does registration involve?
Filing an application with the Secretary of State
Paying a $200 annual filing fee
Posting a $10,000 surety bond (or an alternative such as a certificate of deposit or letter of credit)
Enforcement & penalties:
Failing to register when required carries significant consequences. Each noncompliant call or text may trigger $5,000 in statutory damages per violation, plus attorneys’ fees and costs.
Practical impact:
If your campaigns include any outreach to prospects (non-customers), registration and bonding are mandatory.
If you restrict outreach to proven customers only, you may claim the exemption and avoid registration — but you should maintain clear documentation of purchase records to support that status.
While there is some commentary suggesting that prospects who express interest—such as by signing up for emails or text alerts—could potentially be considered “customers,” that interpretation has not yet been tested in Texas courts. Because this is an untested and novel area of law, we recommend a conservative reading: “former or current customer” should mean someone who has actually completed a purchase of goods or services. Until courts provide further clarity, this approach minimizes compliance risk.
3. Do Not Call (DNC) Rules and Limited Exceptions
Section 304 incorporates familiar Do Not Call rules but with Texas-specific features. Telemarketers may not call numbers listed on the Texas DNC registry more than 60 days after the number is added to the list.
Private right of action: Two unlawful calls or texts can establish a violation, with statutory damages starting at $500 for knowing violations. Consumers may also bypass the state’s administrative complaint process and instead sue under the Texas Deceptive Trade Practices Act (DTPA) to pursue actual damages.
Exceptions: Like the federal TCPA, the Texas law carves out limited safe harbors:
Calls or texts to someone with an established business relationship (i.e., a prior purchase or ongoing account).
Return calls initiated in response to a consumer inquiry.
Debt collection communications.
Isolated mistake defense: If a violative call or text was a one-time error and the business had adequate written procedures in place to comply, the company may invoke a “safe harbor” defense.
While helpful, these exceptions are narrow. They will not cover broad prospecting campaigns, even if prospects have opted in.
4. Dialing Technology Restrictions
Section 305 continues to regulate the use of automated dialing equipment. Telemarketers cannot use an Automatic Dial Announcing Device (ADAD) to place calls without prior consent from the recipient. Violations carry $500 per call or text in statutory damages.
5. Disclosure Requirements Under SB 140
In addition to registration and DNC compliance, SB 140 also imposes disclosure obligations. Businesses that must register are required to make certain information available to consumers, including:
· Posting proof of registration (certificate) where consumers can access it, such as on the company’s website.
· Providing specific information before a purchase is completed, including the business’s street address and other details where promotional gifts or special offers are involved.
Because the exact disclosures depend on the nature of the offer and how outreach is conducted, businesses cannot rely on a one-size-fits-all approach.
👉 Our firm is working closely with clients to evaluate these requirements in the context of their specific business models, and to design compliance strategies tailored to each situation.
What Businesses Need to Know
Registration and disclosure requirements are not optional if your business texts or calls prospects in Texas. Even a single unregistered campaign could result in significant statutory penalties.
Exemptions are limited and do not generally apply to marketing outreach beyond existing customers or responsive calls; because the law’s language is untested, we recommend a strict reading that limits the exemption to actual purchasers.
Dual liability is possible: a single communication may give rise to claims under both the federal TCPA and the Texas Mini-TCPA.
Compliance policies must be updated now to ensure telemarketing practices align with the law before it becomes enforceable on September 1, 2025.
Bottom Line
SB 140 raises the stakes for businesses using SMS, MMS, or voice outreach in Texas. The new registration and disclosure obligations, paired with limited exceptions and substantial statutory penalties, mean that companies must act quickly to review and update compliance procedures.
Our team can help determine whether your business is subject to these requirements, assist with the registration and bond process, and provide guidance on structuring outreach campaigns to minimize risk.
This update is for informational purposes only and is not legal advice. For advice specific to your situation, consult with your own qualified counsel.