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.
A New Era for Telemarketing in Texas: What You Need to Know
Texas is set to introduce significant changes to telemarketing regulations, impacting businesses across the state. Starting from September 1, 2025, Senate Bill 140 (SB 140) will redefine telemarketing practices and increase compliance obligations for businesses involved in telephone solicitation.
What’s Changing?
One of the standout features of SB 140 is the expansion of the definition of telephone solicitation. The bill now includes a variety of communication methods previously considered exempt, such as:
- Text messages (SMS)
- Graphic/image messages (MMS)
- Other electronic solicitations
This shift means that businesses using these channels for marketing will face stricter regulations beginning in 2025.
Who’s Responsible?
Furthermore, SB 140 introduces new liability for franchisors. Franchisors and those supporting franchisees can be held accountable for any non-compliant marketing directed at Texas consumers. This means that if a franchisee engages in questionable marketing tactics, the franchisor might also face legal repercussions.
New Compliance Rules
With the new law in effect, businesses involved in telemarketing must adhere to several compliance requirements:
- Register as “telephone solicitors” by completing an application and paying a fee of $200.
- Maintain a security bond valued at $10,000.
- Renew registration annually.
Additionally, companies creating marketing content or supplying leads may share liabilities for any messaging that does not comply with the new guidelines.
Consumer Rights Take a Leap
In a move that strengthens consumer protections, the Texas Deceptive Trade Practices Act (DTPA) is enhanced under this new legislation. Consumers will have a private right of action for repeated violations, empowering them to pursue claims against businesses non-compliant with the new regulations.
Possible Penalties
Businesses need to be mindful of the penalties associated with SB 140. Civil penalties can reach up to $5,000 per violation, making compliance crucial. For national franchisors operating in Texas, the risk of repercussions from just one mismanaged marketing campaign could be significant.
Steps to Take Now
As businesses prepare for SB 140, here are some proactive steps to consider:
- Review and update all marketing materials targeting Texas consumers.
- Confirm any applicable exemptions to the regulations and document them.
- Register with the Texas Secretary of State and secure the necessary bonds.
- Incorporate compliance obligations into franchise agreements.
- Ensure clear and documented opt-in processes for marketing.
- Update consent language to align with new SMS and MMS regulations.
- Respect restricted calling and texting hours as defined by the law.
- Train employees and franchisees on compliance issues.
Watch This Space
Currently, there are ongoing legal disputes surrounding the enforcement of SB 140, with three entities suing to block its implementation. The state has indicated that certain consent-based text messages might be exempt, but uncertainties remain regarding the private right of action that consumers may pursue.
In summary, businesses targeting Texas residents should prioritize establishing clear and documented opt-in procedures to stay compliant with both state and federal laws. As telemarketing regulations continue to evolve, staying adaptable and vigilant will be key to navigating the new landscape.
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 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.
