We want to keep you informed about important changes that may affect your text marketing campaigns.
What's Changing?
Texas has passed new legislation (SB 140) that now treats SMS and MMS marketing the same as traditional telemarketing under state law. These changes take effect on September 1, 2025.
Key Requirements
Text marketing is now subject to the same rules as telemarketing in Texas
Most businesses will need to register with the state before sending marketing texts to Texas residents
Registration requires a $10,000 security deposit
Non-compliance penalties can reach $5,000 per text message
By September 1, you need to
Register with the State of Texas as an SMS sender.
Establish and document a $10,000 “deposit” (really, this more of a pledge, see below) to offset potential compliance violations. (About $100/year)
Requirement 2 is not as bad as it seems. You do NOT need to actually tie up the $10K. We recommend SuretyBonds.com for an easy path with instant approval for $100 / year.
Next Steps
We recommend reviewing your current marketing practices and customer locations. If you're unsure whether your contacts include Texas residents, consider registering with the state or removing potentially affected contacts from your campaigns.
FAQs
Do I need to comply if I’m not located in Texas?
Yes. The law applies to any business texting Texas residents. Since about 10% of the U.S. population lives in Texas, the odds are high that your list includes Texas numbers—even if you have only a few dozen subscribers.
Can I just exclude Texas residents from my list?
Not reliably. There’s no foolproof way to identify Texas residents. Area codes, IP tracking, or past addresses are not enough—and subscribers may move to Texas after joining your list. That’s why compliance is the only safe option.
This feels unfair. Should I stop texting altogether?
We get it—the law is frustrating. But here’s the reality:
The registration process takes about 2 hours and costs about $200 per year.
Texas accounts for 1 in 10 potential customers. Cutting them out isn’t realistic.
SMS is still one of the highest-ROI marketing channels.
We strongly encourage you to register, stay compliant, and keep texting. We’ve done it ourselves—and we’ll help you through it.
What happens if I don’t comply?
Non-compliance carries financial risks. A business that fails to register, post the required bond, or violates SB-140 (e.g., out-of-hours texts, ignoring opt-outs) could face:
Customer lawsuits under the Texas Deceptive Trade Practices Act (DTPA).
Statutory and treble damages, plus attorney’s fees and emotional distress claims.
Repeat lawsuits for repeat violations.
Our strong recommendation: register by September 1. It’s paperwork-heavy, but it protects your brand.
Do I actually have to pay $10,000?
No. Texas requires a $10,000 deposit, but you don’t need to tie up your cash. Instead, most businesses use a Surety Bond:
Costs around $100 per year.
Meets the deposit requirement.
Keeps your $10,000 in your control.
Is the $10,000 bond because I’m likely to get fined?
Not at all. If you follow Salesmsg’s best practices, compliance violations are unlikely. The law requires the bond “just in case”—but it doesn’t mean fines are expected.
Does the law change what kinds of texts I can send?
No. The content rules stay the same:
Clear and explicit opt-ins.
Standard quiet hours.
Honoring opt-outs
If your program is already compliant with national SMS rules, you’ll remain compliant once you register and secure the bond.
What’s involved in the registration process?
The paperwork takes about 2 hours.
You’ll need a notary (we recommend Notarize.com).
Contact us—we can connect you to a fast-track $100 Surety Bond option to avoid locking up $10,000.
What if I have multiple brands under one parent company?
It depends on your corporate structure:
Option 1: One registration (parent company + DBAs).
Register the parent company as the “Seller.”
List each brand as a Doing Business As (DBA) name.
Provide corporate structure and business details for each brand.
Option 2: Separate registrations per brand.
Each consumer-facing brand registers individually.
The parent company only registers if it is also consumer-facing.
Example:
Acme Inc. owns BeautyCo and ClothingCo.
Option 1: Register Acme Inc. once, list BeautyCo + ClothingCo as DBAs.
Option 2: Register BeautyCo + ClothingCo separately; no need to register Acme Inc.
We recommend consulting your lawyer to confirm which approach fits your structure.