News Summary
Texas businesses involved in telemarketing should prepare for significant changes coming with Senate Bill 140. Effective September 1, 2025, the definition of telephone solicitation will expand to include text and image messages, creating new compliance obligations and potential liabilities. Franchisors may also face accountability for franchisee marketing practices. With stricter penalties for violations, it’s crucial for businesses to adapt their marketing strategies to avoid hefty fines. Consumer protections will increase, empowering Texans to take action against non-compliant businesses.
Austin, Texas – Texas Senate Bill 140 (SB 140), set to go into effect on September 1, 2025, introduces stringent telemarketing regulations that will significantly impact businesses engaging in marketing to Texas consumers. This new legislation expands the definition of “telephone solicitation” to encompass not only traditional calls but also text messages (SMS), graphic/image messages (MMS), and other electronic solicitations.
The law brings previously exempt marketing methods under regulatory scrutiny, thereby increasing liability for companies involved in such practices. Notably, franchisors and businesses that support franchisees will be held directly accountable for any non-compliant marketing campaigns targeting Texas residents. This provision means that legal obligations will apply to all businesses, regardless of their location, providing they market to consumers in Texas.
With this legislative change, new compliance requirements for businesses will include mandatory registration as “telephone solicitors,” alongside payment of a registration fee of $200. Businesses will also need to maintain a $10,000 security bond, and the registration will necessitate renewal annually. These steps mark a significant shift in telemarketing compliance, creating greater responsibility for businesses in managing their marketing outreach.
The liability for non-compliance does not solely rest with the sender of the marketing material. Franchisors can now be held accountable if they are found to be involved in creating marketing content, supplying leads, or directing campaign strategies that violate these new regulations. This change is especially concerning for national franchisors with multiple locations in Texas, as the potential for widespread consumer claims arising from just one non-compliant campaign increases.
Texas consumers now have additional legal protections under the Texas Deceptive Trade Practices Act (DTPA), which grants them a private right of action. This provision allows consumers to make repeated claims for any future violations, thereby enhancing the risk of serial litigation directed against businesses. Companies now face the possibility of significant civil penalties, with fines reaching up to $5,000 for each violation of the telemarketing laws.
In light of these impending changes, experts advise that businesses should take proactive measures to ensure compliance. This includes reviewing and updating all marketing materials targeting Texas residents while confirming and documenting any exemptions applicable to the new regulations. Businesses are also encouraged to register promptly with the Texas Secretary of State and secure the required bonds where necessary.
To meet the new obligations, franchise agreements should include clear compliance terms and indemnification provisions. Businesses must also ensure that their opt-in processes for marketing communications are well-documented and transparent. Updating consent language to align with the new SMS and MMS messaging rules is vital, as is configuring systems to respect limited hours for calling and texting.
Moreover, staff training is critical. Companies are urged to provide compliance training to their employees and franchisees to avoid pitfalls associated with the new law. Franchisors, in particular, should closely monitor the activities of their franchisees to mitigate potential liabilities arising from marketing violations.
As SB 140 prepares to take effect, litigation continues, with three entities having filed lawsuits against the state to block enforcement of the law. Although the state has clarified that consent-based text messaging may escape some of the law’s requirements, uncertainty lingers regarding the extent of private rights of action that consumers can pursue.
To navigate the evolving landscape of telemarketing laws, businesses must remain flexible and vigilant. Establishing clear, documented opt-in procedures is essential not just for compliance with Texas regulations but also with federal laws governing marketing practices.
As the effective date of SB 140 approaches, companies are urged to take all necessary steps to avoid unintended legal consequences that could arise from the new telemarketing framework.
Deeper Dive: News & Info About This Topic
- Jw.com: Insights on Texas TCPA and SB 140
- JD Supra: Texas Senate Bill 140 – New Telemarketing Regulations
- The National Law Review: Texas Exempts Consent-Based Text Marketing SB 140
- Wikipedia: Telemarketing
- Orrick: Navigating Changes to Texas Telemarketing Law
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.
