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 Telemarketing Laws Get Major Overhaul
Texas is set to implement significant changes to its telemarketing regulations with the introduction of Senate Bill 140 (SB 140), which will take effect on September 1, 2025. These changes aim to modernize the state’s telemarketing framework and impose stricter guidelines on businesses reaching out to consumers.
Key Updates to Telemarketing Regulations
The new regulations revamp the existing Texas mini-Telephone Consumer Protection Act (mini-TCPA), initially enacted in 2009 and based on the federal Telephone Consumer Protection Act (TCPA) established in 1991. The updated legislation broadens the scope, extending beyond just phone calls to include text message solicitations. Businesses that utilize texting as a marketing tool will now be subject to these new rules, increasing their responsibilities when communicating with potential customers.
New Registration Requirements Explained
Businesses engaged in telemarketing in Texas will be required to register under SB 140, which comes with a new financial commitment. The registration process mandates a fee of $200 per business location and the submission of a $10,000 security deposit to address potential penalties that may arise from violations. Additionally, businesses must keep their records updated, submitting a supplemental addendum every quarter or whenever there are significant operational changes. Noncompliance with these registration requirements may result in civil penalties up to $5,000 per violation.
Exemptions from Registration
Not all businesses will be subjected to the new registration and compliance requirements. Certain organizations, including educational institutions, nonprofits, and businesses primarily engaged in retail sales, may qualify for exemptions. Each business is encouraged to evaluate its situation to determine eligibility under these criteria.
Penalties for Noncompliance
With the new legislation comes a more stringent enforcement landscape. A private right of action has been introduced under the Texas Deceptive Trade Practices Act (DTPA), allowing consumers to seek statutory damages ranging from $500 to $1,500 per violation. This could expose companies to significant financial risks, particularly those that become targets of class-action lawsuits related to telemarketing infractions.
Emphasis on Compliance
As the new regulations approach, businesses should prioritize compliance to avoid civil and administrative penalties. Violations may incur administrative fines up to $1,000 per incident, which can add up quickly. Firms are encouraged to re-evaluate their marketing practices and seek professional legal counsel to ensure they are fully equipped to navigate these changes effectively.
Looking Ahead
The telemarketing landscape in Texas is poised for transformation as the September 2025 deadline approaches. Business owners are advised to stay informed about the updated regulations and prepare accordingly to maintain their operations without interruption. Understanding the new laws will be crucial in avoiding unwanted surprises when the implementation date arrives.
As Texas prepares for these legislative changes, the implications for telemarketing practices will be significant. Commercial entities are encouraged to establish compliance plans that reflect the new requirements, ultimately protecting their rights and revenues while fostering responsible marketing behaviors.
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 AUSTIN WRITER
The AUSTIN STAFF WRITER represents the experienced team at HEREAustinTX.com, your go-to source for actionable local news and information in Austin, Travis 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 SXSW, Austin City Limits Music Festival, Formula 1 United States Grand Prix, and the Austin Film Festival. Our coverage extends to key organizations like the Greater Austin Chamber of Commerce and Visit Austin, plus leading businesses in technology, automotive, and retail that power the local economy such as Dell Technologies, Tesla, and Apple. As part of the broader HERE network, including HERECollegeStation.com, HEREDallas.com, HEREHouston.com, and HERESanAntonio.com, we provide comprehensive, credible insights into Texas's dynamic landscape.
