Texas has just made a major move that reshapes how marketers can use SMS. With the passage of Senate Bill 140 (SB 140), the state is tightening the rules around text-based marketing and raising the compliance stakes for businesses that message consumers.
This update signals a broader trend: states are expanding telemarketing laws to cover new communication channels, forcing marketers to rethink how they manage consent, registration, and outreach practices. For brands using SMS as part of their customer engagement strategy, understanding these changes—and acting fast—will be key to staying compliant and protecting deliverability.
What is SB 140?
Effective September 1, 2025 Texas will start enforcing SB 140, a bill that expands the state’s definition of “telephone solicitation” to include text messages. Under this update, any promotional SMS, MMS, or image-based message now qualifies as telemarketing. Under prior law, those making “telephone solicitations” in Texas had to register as telemarketers in some cases, file statements, and meet certain disclosure obligations.
This update means that businesses engaging in SMS marketing—or any form of promotional texting—must now comply with the same registration, disclosure, and operational requirements that apply to telemarketers.
Private Right of Action Under the DTPA
That change alone would be enough to raise eyebrows. But SB 140 also gives Texas residents the right to sue under the Deceptive Trade Practices Act (DTPA), without needing to go through a state agency.
That means consumers, or their attorneys, can go straight to court if they believe they’ve received a noncompliant message. Potential penalties include:
- Triple (treble) damages for willful violations
- Attorney’s fees and court costs
- Claims of mental anguish
In practice, this opens the door for class actions and serial lawsuits, especially if a company’s SMS campaigns aren’t properly segmented or consent-based.
Worse, there’s no cap on claims for repeated violations. That could turn into multiple expensive lawsuits, fast.
What This Means for Marketers
For marketers, this means SMS is no longer a low-risk channel in Texas. If you’re sending messages to Texas numbers (even if you’re based elsewhere) you’ll need to treat those texts like regulated calls:
- Businesses sending SMS to Texas residents are responsible for registering with the Texas Secretary of State
- Confirm opt-in consent is explicit and documented (sending to customers-only)
- Honor opt-outs immediately and reliably
- Review your automated workflows
- Decide to build a segmentation to suppress Texas residents
- Make sure your legal and compliance teams are briefed
Marketers who rely on SMS for promotions, marketing, or automated flows for SMS should take this seriously. Failure to register, send during approved call hours, message non-customers, or ignore opt-out requests can lead to fines and litigation exposure. Once the door opens for private litigation, it rarely closes. Businesses should act quickly to audit their SMS programs, consult counsel, register if needed, honor opt-outs, and adjust timing windows.
Act-On customers wondering how this impacts their business, and what steps to take, can contact customer support for help.
How Businesses Should Prepare
Now is the time to act. Businesses using SMS or MMS for marketing, sales, or customer communication should:
- Audit existing SMS programs for compliance gaps.
- Consult legal counsel to confirm obligations under SB 140.
- Register as a telemarketer if your campaigns meet the threshold.
- Update consent language and opt-out mechanisms.
- Adjust sending windows to meet call-hour restrictions.
Proactive steps taken now can prevent expensive litigation and reputational harm later.
Act-On Customers: What to Do Next
If you’re an Act-On customer, our team can help ensure your SMS marketing aligns with Texas law.
Contact Act-On customer support to:
- Review your SMS settings and workflows
- Confirm compliance with SB 140
- Discuss segmentation options for Texas residents