News Summary
Texas has enacted Senate Bill 140, introducing significant changes to telemarketing regulations that will affect how businesses engage with consumers. Starting September 2025, all telemarketers must register and comply with new rules, including fees and quarterly reporting. Exemptions apply to certain organizations, but noncompliance can lead to harsh penalties. As businesses prepare for this shift, understanding the regulations is crucial to avoid costly mistakes.
Texas Implements Significant Changes to Telemarketing Laws Ahead of Senate Bill 140’s 2025 Effective Date
Texas has announced major amendments to its telemarketing laws through Senate Bill 140 (SB 140), which will have widespread implications for businesses that engage in telemarketing. These changes are set to take effect on September 1, 2025, and expand existing requirements significantly, particularly regarding text message solicitations.
The Telephone Consumer Protection Act (TCPA) of 1991 serves as the federal framework aimed at reducing unwanted telemarketing. Texas has its own version, known as the Texas mini-TCPA, which has been in place since 2009. Those engaging in telemarketing from Texas or targeting Texas residents must navigate these regulations carefully, as non-compliance could lead to serious repercussions.
Key Changes Under SB 140
One of the most notable shifts in the revised telemarketing regulation is the extension of the registration requirement to include text message solicitations in addition to phone calls. Businesses involved in telemarketing will now be required to register specifically for sending text messages to potential consumers.
The registration process entails a fee of $200 for each business location, along with a $10,000 security deposit allocated for penalty coverage purposes. Furthermore, once registered, businesses must provide a supplementary addendum on a quarterly basis or whenever there are any material changes to their operation.
Consequences of Non-Compliance
The stakes for failing to comply with these new registration requirements have escalated significantly. Violating these rules may result in civil penalties that can reach up to $5,000 per violation. Additionally, a new private right of action has been introduced under the Texas Deceptive Trade Practices Act (DTPA), allowing individuals to seek damages in relation to breaches of the mini-TCPA. Statutory damages could range anywhere from $500 to $1,500 per violation, potentially leading to higher financial liabilities in class action lawsuits.
Given these developments, businesses that engage in telemarketing must prioritize compliance to mitigate litigation risks and potential financial penalties. Enforcement of the new regulations will be a focus area, with administrative penalties for violations potentially reaching $1,000 each.
Exemptions and Legal Considerations
While the new telemarketing regulations apply broadly, some exemptions are offered. Educational institutions, nonprofits, and businesses primarily carrying out retail sales may avoid registration requirements. However, due to the nuanced nature of these exemptions, businesses are strongly encouraged to evaluate their eligibility on a case-by-case basis.
It is recommended that organizations conduct thorough assessments of their current marketing practices to ensure adherence to the updated rules. Consulting with legal professionals specializing in telemarketing regulations can provide clarity and assist in navigating this complex landscape.
Conclusion
As Texas prepares for the rollout of SB 140, businesses involved in telemarketing will face heightened demands for compliance. The introduction of stricter regulations not only increases financial risks but also emphasizes the importance of adopting transparent practices in the telemarketing landscape. Businesses that take proactive measures to understand and implement these changes will be better positioned to avoid future pitfalls.
Deeper Dive: News & Info About This Topic
- JD Supra: Texas Mini-TCPA Now Covers Marketing Texts
- National Law Review: Texas Mini-TCPA Gets Makeover
- Kelley Drye: Texas Mini-TCPA Law FAQs for Marketing Texts
- Perkins Coie: Texas Broadens State’s TCPA Rules
- Wikipedia: Telephone Consumer Protection Act
Author: STAFF HERE COLLEGE WRITER
The COLLEGE STATION STAFF WRITER represents the experienced team at HERECollegeStation.com, your go-to source for actionable local news and information in College Station, Brazos County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the Brazos Valley Fair & Rodeo, Chilifest, and Aggie Muster. Our coverage extends to key organizations like the Bryan-College Station Chamber of Commerce and United Way of the Brazos Valley, plus leading businesses in education, biotechnology, and retail that power the local economy such as Texas A&M University, Fujifilm Diosynth Biotechnologies, and H-E-B. As part of the broader HERE network, including HEREAustinTX.com, HEREDallas.com, HEREHouston.com, and HERESanAntonio.com, we provide comprehensive, credible insights into Texas's dynamic landscape.
