October 11, 2025

Significant Changes to Telemarketing Regulations in Texas

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.

AUSTIN, Texas – Texas Senate Bill 140 (SB 140) introduces stricter regulations on telemarketing practices, aiming to enhance consumer protection and increase compliance among businesses targeting Texas residents. Effective September 1, 2025, the law broadens the scope of telemarketing to include not only traditional phone calls but also text messages (SMS), graphic/image messages (MMS), and other forms of electronic solicitations. With these changes, marketing methods that were previously exempt from telemarketing regulations will now be subject to oversight.

One of the most significant changes brought about by SB 140 is the extension of liability to franchisors and businesses that support franchisees. Under the new regulations, these entities can be held accountable for non-compliant marketing campaigns aimed at Texas consumers, regardless of their location. This places a heightened responsibility on franchisors who create marketing content, supply leads, or direct campaign strategies, as they can be liable for any violations committed by their franchisees.

In addition to expanded definitions of telemarketing, the legislation imposes new compliance obligations for all businesses engaging in marketing towards Texas residents. Key provisions include:

Mandatory registration as “telephone solicitors” with the Texas Secretary of State.
A $200 registration fee.
Maintenance of a security bond valued at $10,000.
Annual registration requirements to ensure businesses remain compliant.

SB 140 also grants Texas consumers a private right of action under the Texas Deceptive Trade Practices Act (DTPA). This allows individuals to file repeated claims for violations, which raises the potential for increased litigation against businesses operating in the state. If found in violation of telemarketing laws, companies can face significant civil penalties, including fines of up to $5,000 for each infraction.

The implications are particularly concerning for national franchisors with multiple locations in Texas, as a single rogue campaign could lead to widespread consumer claims. Thus, businesses are encouraged to take proactive compliance measures to minimize their risk. Recommended actions include:

Reviewing and updating all marketing strategies aimed at Texas residents.
Verifying and documenting any applicable exemptions to the new regulations.
Promptly registering with the Texas Secretary of State and securing the necessary bonds.
Incorporating compliance obligations and indemnification clauses within franchise agreements.
Ensuring clear opt-in processes for all marketing communications.
Updating consent language to align with new SMS and MMS regulations.
Configuring systems to adhere to the restricted hours for calling and texting.
Providing compliance training to employees and franchisees regarding the law’s requirements.

Although litigation is currently underway with three entities suing the state to block SB 140’s enforcement, clarity remains around specific aspects of the law. The state has indicated that consent-based text messaging might be exempt from the law’s requirements; however, ambiguity persists regarding the scope of the private right of action that consumers can exercise. Consequently, it is crucial for companies to establish and document clear opt-in procedures to adhere to both state and federal telemarketing laws.

As telemarketing regulations evolve, businesses operating in Texas must remain vigilant and adaptable. Ensuring compliance with SB 140 will require ongoing monitoring of both state legislation and consumer protection laws to effectively respond to the changing legal landscape regarding telemarketing in Texas and beyond.

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Author: STAFF HERE GEORGETOWN

The GEORGETOWN STAFF WRITER represents the experienced team at HEREgeorgetown.com, your go-to source for actionable local news and information in Georgetown, Williamson 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 the Red Poppy Festival, Georgetown Swirl, and Christmas Stroll. Our coverage extends to key organizations like the Georgetown Chamber of Commerce and the Downtown Georgetown Association, plus leading businesses in manufacturing and tourism that power the local economy such as local wineries and historic downtown shops. As part of the broader HERE network, including HEREaustin.com, HEREcollegestation.com, HEREdallas.com, HEREhouston.com, HEREgeorgetown.com, and HEREsanantonio.com, we provide comprehensive, credible insights into Texas's dynamic landscape.