Texas Senate Bill 140: Registration and Compliance Requirements for Telephone Solicitation: What Businesses Need to Know About New Rules for Text and Phone Marketing

Prefer to listen while you’re on the go? We’ve created an audio version of this Client Advisory that you can play anytime, anywhere.

On June 20, 2025, Texas Governor Greg Abbott signed Senate Bill 140 (SB 140) into law, amending the telephone solicitation requirements under the Texas Mini-TCPA (Texas Business & Commerce Code §§301–305). The legislation became effective September 1, 2025, and expands registration requirements and creates heightened liability exposure for businesses conducting telephone solicitations to Texas residents.

Specifically, SB 140 broadens the definition of “telephone solicitation” to encompass SMS, MMS, and other text-based marketing communications. This law includes registration requirements, imposes substantial penalties, and introduces a new private right of action that will increase litigation risk for non-compliant businesses.

Key Requirements

The law applies to businesses, including direct solicitors and the companies they represent, that make telephone calls, auto-dialed calls, or send text/image messages from Texas or to Texas residents. Notably, the legislation covers not only the person making the solicitation but also the seller and anyone employed by the seller to conduct telephone solicitations.

Compliance Obligations

Registration Requirements

Businesses must:

1. File Form 3401 annually with the Texas Secretary of State (SOS)
2. Pay a $200 annual registration fee
3. Obtain a $10,000 surety bond (approximately $250 for a three-year bond), letter of credit, or certificate of deposit
4. File a form appointing the Secretary of State as Agent of Service
5. Submit quarterly reports to the Secretary of State containing a list of salespersons

Platform Providers: Service providers or platforms are not required to register unless they place calls or send texts for their own products and services, or create and send messages as the primary party rather than merely as an agent. However, service providers may face third-party liability due to the amended law’s addition of private consumer rights of action.

Other Requirements

Registered sellers may only place calls between 9:00 a.m. and 9:00 p.m. (recipient’s local time) Monday through Saturday, and between 12:00 p.m. and 9:00 p.m. (recipient’s local time) on Sundays. These hours are significantly more restrictive than federal requirements. Additionally, registered sellers must make specific disclosures as applicable, including: (i) the complete street address from which the salesperson is calling, (ii) the principal business location address (if different), (iii) detailed information about any gifts, prizes, or premium offers, actual statistics on past recipients of promotional items, and manufacturer names for items claimed to be below usual pricing.

Exemptions

The law provides limited exemptions for:

1. Regulated entities: Utilities regulated by the Texas PUC, FCC-regulated entities, securities firms, insurance companies, depository institutions, certain utilities, communications carriers, and CFTC-registered parties are exempt.
2. Media and subscription services subject to FTC Rules: Solicitors of media subscriptions, periodic-shipment merchandise (with advance consent), or products offered through qualifying large-format catalogs are exempt.
3. Educational and nonprofit organizations: Educational institutions and 501(c)(3) nonprofit organizations are exempt.
4. Business-to-business sales: Sales to purchasers who intend to resell or use goods in recycling, reuse, remanufacturing, or manufacturing processes are exempt.
5. Food sales: Persons soliciting the sale of food products are exempt.
6. Customer maintenance and existing relationships: Solicitations for maintenance or repair of previously purchased goods, or solicitations to former or current customers of a business operating under the same name for at least two years, are exempt.
7. Face-to-face arrangements and established retailers: Parties that limit calls to arranging face-to-face sales presentations, or retailers operating under the same name for at least two years where sales occur primarily at the retail location, are exempt.
8. Qualifying service providers: A service provider that has operated under the same name for at least three years and derives at least 75 percent of its solicitation business from exempt entities is itself exempt.
9. Isolated transactions: Individuals making isolated solicitations that are not part of a pattern of repeated, similar transactions are exempt.

Private Right of Action:

The law adds a private right of action permitting individuals to file lawsuits directly against senders for alleged violations under the Texas Deceptive Trade Practices Act (DTPA). Potential damages include attorneys’ fees and treble damages for intentional violations. Most notably, consumers may sue the same company multiple times for separate violations.

Penalties

Civil penalties for non-compliance include $5,000 per violation or $25,000 per violation for willful violations. Each call or text message constitutes a separate violation. Non-compliance also constitutes a Class A misdemeanor, punishable by up to one year in jail and a $4,000 fine.

For more information or compliance assistance, please contact Susan Duarte at sfd@commlawgroup.com.