Texas SMS Laws: What SB 140 Means for Business Text Messaging

Amila Udowita
Sep 4
6 min read

Text messaging has become one of the most effective ways for businesses to connect with customers. But in Texas, the rules of the game are changed now.

From September 1, 2025, onwards, Texas Senate Bill 140 (SB 140) came into effect, expanding the state’s telemarketing regulations to include SMS and MMS marketing. That means businesses that send promotional texts to Texas residents now face new compliance obligations, even if they’re located outside of Texas.

Why does this matter?

The law applies broadly to any person or business texting into Texas.
Non-compliance is costly. Violations can trigger civil penalties, lawsuits under the Texas Deceptive Trade Practices Act (DTPA), and enforcement by the state attorney general.
Businesses must now manage requirements around registration, consent, quiet hours, opt-outs, and recordkeeping.

For companies that rely on texting to engage customers, this shift creates both challenges and opportunities. The challenge is ensuring compliance with Texas state’s strict new framework. The opportunity is using platforms like Falkon SMS, which help businesses manage texting programs responsibly while staying ahead of legal risk.

What Texas SB 140 Changes for Business Texting

For years, Texas telemarketing rules focused mostly on phone calls. That changed on September 1, 2025, when Senate Bill 140 (SB 140) expanded the definition of “telephone solicitation” to include text and multimedia messages (SMS/MMS).

In practice, this means:

Text marketing = telemarketing: Any SMS or MMS message sent with the intent to sell, rent, or promote a product or service will be regulated the same way as a phone solicitation.
Applies even if you don’t use an autodialer: Unlike federal TCPA rules, Texas law applies whether messages are sent manually or automatically. If it’s marketing, it counts.
Covers businesses inside and outside Texas: If your message lands on a Texas resident’s phone, you’re covered regardless of where your business is located.
Narrow exemptions: Some organizations (like nonprofits, healthcare providers, or businesses with an established customer relationship) may qualify for exemptions, but the burden of proving exemption rests with the sender.
New compliance hurdles: Businesses must now handle registration, bonding, consent collection, opt-out management, quiet hours, and recordkeeping for text campaigns, or risk penalties and lawsuits.

In short, if your company sends marketing texts to Texas residents, SB 140 makes compliance with Chapter 302 a legal requirement, not an option.

Key Compliance Requirements Under Texas Chapter 302

With SB 140 expanding the definition of “telephone solicitation” to include text messages, businesses that use SMS or MMS to reach Texas residents must now comply with Chapter 302 of the Texas Business & Commerce Code. Here are the main requirements every organization needs to understand:

1. Registration with the Texas Secretary of State

Businesses engaged in text-based solicitations must register as telephone solicitors.
Registration requires filing Form 3401, paying a $200 fee, and posting a $10,000 security bond.
Registration must be renewed annually and updated if business details change.

2. Prior Express Written Consent

Businesses must obtain clear, unambiguous, written consent before sending marketing texts.
Consent must be voluntary and cannot be required as a condition of purchase.
Records of consent must be stored and available for inspection.

3. Opt-Out Mechanism

Every marketing text must include an opt-out option (e.g., “Reply STOP to unsubscribe”).
Opt-out requests must be processed immediately, and businesses cannot contact that consumer again for marketing unless new consent is provided.

4. Quiet Hours Restrictions

Marketing texts may only be sent between 9:00 a.m. and 9:00 p.m. (Texas local time).
Messages sent outside these hours are violations of Chapter 302.

5. Recordkeeping Obligations

Businesses must maintain detailed records, including:

Proof of consumer consent
Opt-out requests and confirmation of compliance
Message logs showing the time and content of texts sent

These records help defend against potential complaints, lawsuits, or state investigations.

6. Private Right of Action

Violations of Chapter 302 are considered false, misleading, or deceptive acts under the Texas Deceptive Trade Practices Act (DTPA).
Consumers can sue businesses for violations, and SB 140 clarifies that multiple successful lawsuits don’t limit future recovery.
In addition to lawsuits, the Texas Attorney General can enforce penalties, making non-compliance especially risky.

How Falkon SMS Helps with Texas Compliance

Navigating new SB 140 rules of Texas can feel overwhelming, especially with the mix of registration requirements, exemptions, and strict consumer protections. Falkon SMS is built to make compliance easier, giving businesses the tools they need to operate confidently under Chapter 302.

Here’s how Falkon SMS supports different industries and use cases:

Built-in Support for Exempt Industries

Law Firms – Sending appointment reminders or case updates to clients is exempt under 302.058. Falkon SMS ensures opt-out compliance by automatically honoring “Reply STOP” requests.
Healthcare Providers – Clinics and hospitals sending SMS reminders or follow-ups are exempt under 302.055 or 302.058. Falkon SMS automates appointment confirmations while keeping communications compliant.
Nonprofits – Fundraising campaigns from nonprofit organizations (302.055) can be managed through Falkon SMS bulk messaging, with opt-out handling baked in.
Retailers with Physical Stores – Businesses offering in-person sales at a physical location (302.059) are exempt, but Falkon SMS still ensures opt-out and quiet-hour compliance.

Support for Businesses Requiring Registration

E-Commerce Stores – Online retailers promoting to new prospects must register with the Texas Secretary of State, post a $10,000 bond, and disclose sales materials. Falkon SMS helps by managing opt-outs, logging every message, and handling 10DLC carrier registration.
Financial Advisors & Recruiters – If prospecting new clients or candidates, these industries are generally covered under solicitation rules unless another exemption applies. Falkon SMS helps segment contacts (new vs. existing), maintain “Do Not Contact” lists, and track opt-outs to reduce risk.

Compliance Features Built into Falkon SMS

Automatic Opt-Out Handling – Instantly processes “STOP” requests to ensure no further messages are sent.
10DLC Registration Support – Keeps campaigns carrier-compliant while aligning with state rules.
Segmentation Tools – Easily separate exempt vs. non-exempt contacts, so teams know which campaigns require registration.
Message Logs & Audit Trails – Provides a clear record of consents, opt-outs, and message history for state audits or legal defense.
Quiet Hour Settings – Configure campaigns to respect Texas State's 9 a.m.–9 p.m. time restriction.

By combining regulatory awareness with practical automation, Falkon SMS gives businesses peace of mind: whether exempt or registered, you can continue texting Texas customers confidently while minimizing compliance risk.

Key Takeaways for Businesses Texting in Texas

The new Texas SB 140 law is a major shift for SMS marketing. Whether your business is based in Texas or simply texts Texas residents, compliance isn’t optional, it’s the law. Here are the most important points to remember:

Most cold B2C outreach in Texas = registration required - If you’re texting new prospects with promotions, you must register with the Texas Secretary of State, post a $10,000 bond, and follow disclosure rules.
Exemptions cover many common use cases - Existing customers, law firms, healthcare providers, nonprofits, and retailers with physical stores often fall under exemptions. But you must be able to prove it.
Consent and opt-outs are non-negotiable - Every marketing text requires prior express written consent. And every message must include a clear opt-out option, and opt-outs must be honored immediately.
Quiet hours matter - Messages can only be sent between 9 a.m. and 9 p.m. Texas time.
Recordkeeping protects your business - Keep detailed logs of consents, opt-outs, and message activity to demonstrate compliance if challenged.

Falkon SMS simplifies Texas compliance

Automatic opt-out handling
10DLC registration with carriers
Segmentation tools for exempt vs. non-exempt contacts
Message logs for audits and legal defense
Quiet-hour scheduling to avoid violations

Bottom line: SB 140 raises the stakes for business texting in Texas. With Falkon SMS, you can stay compliant while continuing to engage customers effectively.

Stay Ahead of New Texting Rules of Texas with Falkon SMS

Texas SB 140 is more than just another regulation; it’s a wake-up call for any business that uses texting to reach customers. With new requirements for registration, consent, opt-outs, and recordkeeping, the risk of non-compliance is high. But compliance doesn’t have to slow your business down.

Falkon SMS gives you the tools to:

Automate compliance processes
Respect quiet hours and opt-outs
Keep accurate message records
Segment audiences for exemption handling
Continue engaging customers confidently

With the new Texas law, now is the time to be compliant. Don’t wait until it’s too late. Review your texting practices today.

Talk to the Falkon SMS team and see how we can help you stay compliant while growing your business in Texas.