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How to Protect Your Texas Business from Massive Fines After SB 140

February 27, 2026 by James Schulman

How to Protect Your Texas Business from Massive Fines After SB 140

Marketing in Texas just got trickier, and missing the mark could cost your business big time. Texas Senate Bill 140 went into effect on September 1, 2025. The big headline from the bill? Texts are now considered telemarketing. This applies to Texas businesses as well as out-of-staters marketing to Texas consumers.

If you’re not playing by the rules, every marketing text (SMS or MMS), image or other digital communication you send could put your business at risk of hefty fines (up to $5,000 per violation!) or consumer lawsuits. 

Staying ahead of these changes isn’t just about avoiding penalties (but you’re gonna want to!). It’s also an opportunity to build trust, strengthen your brand and turn compliance into a competitive advantage.

The 411 on SB 140

Before SB 140, Chapter 302 of the Texas Business & Commerce Code focused on calls. Now, the law is more expansive. It also covers text messages, image messages, autodialer calls and transmissions to fax devices. It also makes these communications subject to Chapter 302 registration and disclosure requirements (more to come on that).

In short, any marketing message sent to a Texas consumer needs to comply with the law unless a narrow exemption applies.

Expanding Consumer Rights

SB 140 gives Texas consumers more power than ever before. Violations of Chapters 304 and 305 are now considered “false, misleading, or deceptive acts” under the DTPA. Consumers can bring private lawsuits for non-compliance, including repeated claims. Moreover, multiple lawsuits for repeated violations are explicitly allowed. This creates dual risk for Texas businesses: enforcement by the Texas Attorney General as well as private lawsuits by recipients. Yikes.

How to Comply with Texas SB 140

To shield your business from massive fines due to non-compliance, businesses marketing to Texas consumers should focus on these critical steps:

  • Registering their business – Businesses that send marketing texts into Texas must register as a telephone solicitor with the Texas Secretary of State (Form 3401) and pay a $200 filing fee. They must also post a $10,000 security bond and renew and update registration annually.
  • Ensuring prior express written consent – Obtain clear, unambiguous consent before sending marketing texts or images. Consent cannot be tied to a purchase.
  • Optimizing opt-out mechanisms – Include an easy opt-out option in every message, and honor all requests immediately.
  • Observing “quiet hours” – Messages may only be sent between 9 a.m. and 9 p.m. Texas local time.
  • Maintaining meticulous records – Keep detailed logs of consents, opt-outs, and message history.
  • Abiding by do-not-call compliance – Ensure your processes respect the Texas Do-Not-Call List and other telemarketing restrictions.

Ignoring SB 140 could cost your business hefty fines for each violation, civil lawsuits from consumers under the DTPA and brand damage that undermines trust with customers and partners.

By taking proactive steps, you can turn compliance into a marketing advantage by showing your audience that your business values transparency, trust and professionalism.

Questions About Marketing in Texas? Contact Us at The Found Gen

SB 140 raises the stakes for marketing in Texas, but it’s also an opportunity to demonstrate professionalism, build trust with your audience and gain a competitive edge.

Our team at The Found Gen helps businesses navigate complex marketing regulations while keeping campaigns effective and engaging. If you have questions about SB 140 or other more fun things like how to zhuzh up your website for maximum conversions, contact us today.

Filed Under: Development, Strategy Tagged With: compliance, SB 140, SMS marketing, telemarketing, Texas business, The Found Gen

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