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
Attention, Texas businesses! If you’re involved in telemarketing or own a franchise, it’s time to perk up your ears and take notice. Starting from September 1, 2025, the Lone Star State is rolling out some serious changes with Senate Bill 140 (SB 140) that are set to shake up how you approach marketing to Texas consumers.
What’s Changing?
First off, SB 140 broadens the definition of “telephone solicitation.” This means it now includes various forms of communication like:
- Text messages (SMS)
- Graphic/image messages (MMS)
- Other electronic solicitations
This is a significant move, especially since marketing methods that were once considered exempt from telemarketing regulations will now come under strict scrutiny.
Who’s Responsible?
The legislation doesn’t just stop at tightening the rules for direct marketers. It also introduces a wave of liability for franchisors. Going forward, franchisors and any businesses that support franchisees could be held accountable for any marketing campaigns aimed at Texas residents that don’t follow the new regulations. Yes, that means if your franchisee goes rogue with their marketing strategies, you might be on the hook!
New Compliance Rules
So, what does this mean for your business? There are several new compliance obligations you need to be aware of:
- Registration as “telephone solicitors” with an application and a fee of $200.
- Maintenance of a security bond of $10,000.
- Renew your registration annually.
Moreover, if you’re creating marketing content, supplying leads, or guiding campaign strategies, you could be hit with the same liabilities as the actual sender of those marketing messages.
Consumer Rights Take a Leap
Your average Texan consumer stands to gain a new level of protection under the Texas Deceptive Trade Practices Act (DTPA). This means consumers can take the fight against non-compliant businesses into their own hands with private right of action for repeated violations, opening the floodgates for potential serial litigation against businesses worrying about non-compliance!
Possible Penalties
Watch out, because if you’re not on your A-game, civil penalties are looming large. Fines can soar as high as $5,000 per violation of these new telemarketing laws. With everything happening, national franchisors with multiple locations in Texas should be especially careful, given the risks associated with claims from just one botched campaign.
Steps to Take Now
What can you do to prepare? Here are some proactive measures:
- Review and update all your marketing materials targeting Texas residents.
- Confirm any applicable exemptions to these regulations and document them.
- Register with the Texas Secretary of State and post the necessary bonds.
- Incorporate compliance obligations into your franchise agreements.
- Ensure your opt-in processes are clear and documented.
- Update consent language to meet new SMS/MMS regulations.
- Respect restricted calling/texting hours as outlined by the law.
- Train employees and franchisees on compliance matters.
Watch This Space
As it stands, there’s some ongoing legal drama too; three entities have sued to block enforcement of SB 140. The state has hinted that consent-based text messaging might be exempt, but there is still a cloud of uncertainty around the private right of action.
To sum it all up, it’s crucial for businesses to establish clear and documented opt-in procedures for marketing to stay compliant with both state and federal laws. Stay flexible and vigilant, as the landscape of telemarketing regulations continues to evolve in Texas and beyond!
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 HOUSTON TX WRITER
HOUSTON STAFF WRITER The HOUSTON STAFF WRITER represents the experienced team at HEREHouston.com, your go-to source for actionable local news and information in Houston, Harris 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 Houston Livestock Show and Rodeo, Art Car Parade, and Chevron Houston Marathon. Our coverage extends to key organizations like the Greater Houston Partnership and Houston Area Urban League, plus leading businesses in energy and healthcare that power the local economy such as ExxonMobil, Schlumberger, and Houston Methodist. As part of the broader HERE network, including HEREAustinTX.com, HERECollegeStation.com, HEREDallas.com, and HERESanAntonio.com, we provide comprehensive, credible insights into Texas's dynamic landscape.
